The foremost and pre-eminent condominium developing company in Myrtle Beach is hands-down, Strand Capital Group LLC, of North Myrtle Beach.
Loyd Daniel, Patrick Lowe, and the other partners in this company are consumate gentlemen, impeccable businessmen, and have impressed me as the smartest men in the area... And Myrtle Beach is not lacking in brilliant executives, believe me.
I ran across this story in the Miami Herald today about a condo project gone bust because of poor planning on the part of the developer, and it brought to mind how impressed I had been with this group that New Resorts markets preconstruction Myrtle Beach condos for sale.
Surprisingly, the developers for this Miami project were not fly-by-nights, and in fact had been without tarnish for 25 years of business. What I DON'T understand, is why any project would be pre-sold before the zoning and construction had been approved and licensed. There's always a possibility of unforeseen circumstances that can delay a project's ground breaking...but this was on the ridiculous side to me. I cannot imagine our guys doing this. Maybe they just do things differently in Miami than they do in the Myrtle Beach condos market.
Here's part of the article with a link for more...
Posted on Fri, Dec. 30, 2005
Codina Group pulls plug on project
Well known developer Armando Codina is returning deposits on a Kendall condominium after some permitting snafus.
BY JENNIFER MOONEY PIEDRA AND MATTHEW HAGGMAN
Prominent Miami developer Armando Codina has pulled the plug on a much anticipated luxury condominium project in East Kendall, because his company didn't obtain all the necessary construction approvals from the county by a Dec. 31 deadline.
Mission Bell Park was slated to be built on 9 acres of vacant land just west of Baptist Hospital at 9100 N. Kendall Dr. About 75 percent of the units in the planned 318-unit complex had been sold.
But for the first time in the Codina Group's 25-year history, company executives say, it sent letters Wednesday notifying buyers their deposits -- plus 7.5-percent interest -- will be returned.
Esslinger Wooten Maxwell, which represented the Codina Group in marketing and selling the project, also has never been involved in a project that returned deposits, according to Ronald A. Shuffield, president of EWM, the second-largest real estate broker in South Florida.
''This project is halted indefinitely,'' said Rafael Rodon, executive vice president of the Codina Group. "That's not to say that something couldn't come back to life.''
In part, Codina's move amounts to another cautionary tale about buying preconstruction condo units, which generally are marketed and sold to the public before regulatory approvals are completed.
But typically, troubled condo projects in the current boom have run aground -- forcing developers to return deposits -- because of developers' inexperience, difficulty in getting financing, or rising construction costs.
In this instance, the developer is an accomplished veteran ready to start construction.
MORE...
Friday, December 30, 2005
Tuesday, December 27, 2005
Google and AOL-The best match
I was rather shocked to read the NY Times article about MSN buying the AOL Search several weeks ago. Even a bigger shock to find out it wasn't true. There's been speculation that Google will give AOL more than an even chance to be in search results and other ways that it might hurt webmasters, but they assure the world it isn't so, and I believe them. They were too good of a match to part ways anyway...Here's the latest from the Google blog about AOL...
About the AOL announcement
12/22/2005 06:25:00 PM
Posted by Marissa Mayer, VP of Search Products & User Experience
The recent announcement of the AOL partnership has been the source of a lot of rumors and misconceptions. We'd like to clear some of those up.- Biased results? No way.
Providing great search is the core of what we do. Business partnerships will never compromise the integrity or objectivity of our search results. If a partner's page ranks high, it's because they have a good answer to your search, not because of their business relationship with us.
- Indexing more of AOL's content. Our goal is to organize all of the world's information. When we say "all the world's information," this includes AOL's. We're going to work with the webmasters at AOL -- just as we work with webmasters all over the world -- to help them understand how the Google crawler works (with regard to robots.txt, how to use redirects, non-html content, etc.) so we don't inadvertently overlook their content.
- AOL will receive a credit towards advertising purchased through Google's ad program. You might wonder if this will affect the ad auction. It won't. We don't offer preferential treatment on advertising (in either the auction or the display) to any of our partners.
- We have a service called "onebox" for which we provide some additional links separate from ads (sponsored links) and search results. (Try searching on [new york transit strike] and look for the news section.) AOL and its products have always been a part of onebox, along with many other providers, and will continue to be.
- There will be no banner ads on the Google homepage or web search results pages. There will not be crazy, flashy, graphical doodads flying and popping up all over the Google site. Ever.
Our service and our business works because of you - our users. You're important to us and something that we think about all the time -- as we build new products, negotiate deals, and think about what our future holds.
We're looking forward to what AOL can help us do for you, and believe that our new agreement with them will only create a better experience for you in 2006 and beyond -- one where you can continue to trust that we're giving you a result because it's the best one we can possibly provide.
About the AOL announcement
12/22/2005 06:25:00 PM
Posted by Marissa Mayer, VP of Search Products & User Experience
The recent announcement of the AOL partnership has been the source of a lot of rumors and misconceptions. We'd like to clear some of those up.- Biased results? No way.
Providing great search is the core of what we do. Business partnerships will never compromise the integrity or objectivity of our search results. If a partner's page ranks high, it's because they have a good answer to your search, not because of their business relationship with us.
- Indexing more of AOL's content. Our goal is to organize all of the world's information. When we say "all the world's information," this includes AOL's. We're going to work with the webmasters at AOL -- just as we work with webmasters all over the world -- to help them understand how the Google crawler works (with regard to robots.txt, how to use redirects, non-html content, etc.) so we don't inadvertently overlook their content.
- AOL will receive a credit towards advertising purchased through Google's ad program. You might wonder if this will affect the ad auction. It won't. We don't offer preferential treatment on advertising (in either the auction or the display) to any of our partners.
- We have a service called "onebox" for which we provide some additional links separate from ads (sponsored links) and search results. (Try searching on [new york transit strike] and look for the news section.) AOL and its products have always been a part of onebox, along with many other providers, and will continue to be.
- There will be no banner ads on the Google homepage or web search results pages. There will not be crazy, flashy, graphical doodads flying and popping up all over the Google site. Ever.
Our service and our business works because of you - our users. You're important to us and something that we think about all the time -- as we build new products, negotiate deals, and think about what our future holds.
We're looking forward to what AOL can help us do for you, and believe that our new agreement with them will only create a better experience for you in 2006 and beyond -- one where you can continue to trust that we're giving you a result because it's the best one we can possibly provide.
Friday, December 23, 2005
Preconstruction in Las Vegas Cooling Down?
The doom and gloom of bubble predicting still plods on...with the less than hopeful prophets trying their best to create that which isn't yet happening. I think that if enough of them say it enough times it will convince many investors that it's true, and unfortunately become true just from the negative publicity.
Thank goodness Myrtle Beach condos have a longer way to go before they price themselves out of existence. I won't believe in any of it until I see it happen in Miami, Vegas or one of the other hot-spots. Here's another little blurb I ran across today...
Signs Condo Craze in Las Vegas Cooling Off
Dec 19, 2005, 07:13 PM EST KLASTV.com
The condo craze in Las Vegas may be in a cooling down period. The advertising blitz for high-end condos is aggressive. But some projects, like the well publicized "Ivana Trump Las Vegas" are failing to just break ground.
The Ivana promised to tower over the Las Vegas skyline. But, experts say that if a high end project fails at first, that doesn't spell it's doom. There is a good chance that another developer will pick it up and be successful with it.
Linda Rheinberger, with the Greater Las Vegas Association of Realtors says rising construction costs, poor planning, and just bad timing are some of the reasons why some hi-end condo projects are not making it. But, Rheinberger says that more of these projects are making it than what was initially thought.
At first, experts thought only 20-percent would be successful. Rheinberger says "It's closer to 30-percent or 40-percent, so I think it's fairly normal." Some realtors are confident the trend to build upwards will continue and be successful.
Jeannine Cutter with Spanish View Towers says she's been experiencing successful sales, where the starting price for a condo is around $800,000.
Cutter says: "My thinking is there is no bubble."
**********************
There's no slow down of condos for sale in Myrtle Beach or North Myrtle.
Thank goodness Myrtle Beach condos have a longer way to go before they price themselves out of existence. I won't believe in any of it until I see it happen in Miami, Vegas or one of the other hot-spots. Here's another little blurb I ran across today...
Signs Condo Craze in Las Vegas Cooling Off
Dec 19, 2005, 07:13 PM EST KLASTV.com
The condo craze in Las Vegas may be in a cooling down period. The advertising blitz for high-end condos is aggressive. But some projects, like the well publicized "Ivana Trump Las Vegas" are failing to just break ground.
The Ivana promised to tower over the Las Vegas skyline. But, experts say that if a high end project fails at first, that doesn't spell it's doom. There is a good chance that another developer will pick it up and be successful with it.
Linda Rheinberger, with the Greater Las Vegas Association of Realtors says rising construction costs, poor planning, and just bad timing are some of the reasons why some hi-end condo projects are not making it. But, Rheinberger says that more of these projects are making it than what was initially thought.
At first, experts thought only 20-percent would be successful. Rheinberger says "It's closer to 30-percent or 40-percent, so I think it's fairly normal." Some realtors are confident the trend to build upwards will continue and be successful.
Jeannine Cutter with Spanish View Towers says she's been experiencing successful sales, where the starting price for a condo is around $800,000.
Cutter says: "My thinking is there is no bubble."
**********************
There's no slow down of condos for sale in Myrtle Beach or North Myrtle.
Thursday, December 8, 2005
Myrtle Beach Condos STILL Flying High!
Ran across this article today in the Wall Street Journal. Note that there are markets that are NOT slowing, and Myrtle Beach condos are part of that market that's still hot!
Investors back away from buying homes
Reluctance could stifle housing market
By RUTH SIMON
The Wall Street Journal
Individuals are pulling back from buying homes and condos as an investment, a move that could accelerate the cooling of the housing market.
Fewer people are competing to buy properties as an investment in heated markets such as Las Vegas, Miami, Phoenix, San Diego and Washington, D.C., real estate brokers and housing analysts say. Some investor-owned properties are returning to the market for sale. With the pace of price appreciation slowing, some investors who were betting on quick profits are instead being squeezed.
The apparent pullback by investors is recent and is just beginning to show up in national data. Evidence of the development also can be seen in a number of markets that had until recently been a hotbed of investor activity.
As speculators withdraw from the market in San Diego, for instance, the number of investors buying property has fallen by nearly half, estimates Russ Valone, president of MarketPointe Realty Advisors, which tracks the San Diego housing market.
In the Phoenix area, as many as 30 percent of properties for sale are owned by investors, said Jay Butler, director of the Arizona Real Estate Center at Arizona State University. Six months ago, most investors were buying rather than selling, he said. The shift has helped to drive up inventories of homes for sale in the Phoenix area, which climbed to 22,340 in October from 8,600 in April, according to data from the Arizona Regional Multiple Listing Service.
In the latest sign that the housing market is cooling, the National Association of Realtors said Tuesday that its index of pending home sales dropped 3.2 percent in October. The reading is the lowest since March.
It’s too early to tell just how a pullback by investors will affect the broader housing market, but their impact on the housing boom has been considerable.
Investors accounted for 9.6 percent of mortgages used to buy homes in the first nine months of this year, the most recent data available, up from 6.7 percent in 2002, according to LoanPerformance, a unit of First American. But the investor share began to drop in the third quarter, the firm said. The figures don’t include second homes that might also provide rental income and serve as an investment.
Myrtle Beach remains one of the nation’s top markets in investor-driven purchases, according to LoanPerformance. It said 18 percent of Myrtle Beach’s housing purchases in the first 10 months of this year were by investors, the 10th-highest rate among metro areas nationwide. The other areas were in California, Idaho, Oregon and Florida.
A softening in investor demand is likely to accentuate any slowdown in home sales, said David Berson, chief economist at mortgage giant Fannie Mae.
He estimates that home sales will fall 10.4 percent over the next two years, largely because of a decline in investor and second-home purchases.
Another concern is that investors will be quicker to sell if prices soften, accentuating any downturn, particularly in areas where speculation has been most prevalent. Some of the most vulnerable markets include Daytona, Fla., Las Vegas, Phoenix and Fresno and Bakersfield, Calif., according to Credit Suisse First Boston analyst Dennis McGill.
Investors back away from buying homes
Reluctance could stifle housing market
By RUTH SIMON
The Wall Street Journal
Individuals are pulling back from buying homes and condos as an investment, a move that could accelerate the cooling of the housing market.
Fewer people are competing to buy properties as an investment in heated markets such as Las Vegas, Miami, Phoenix, San Diego and Washington, D.C., real estate brokers and housing analysts say. Some investor-owned properties are returning to the market for sale. With the pace of price appreciation slowing, some investors who were betting on quick profits are instead being squeezed.
The apparent pullback by investors is recent and is just beginning to show up in national data. Evidence of the development also can be seen in a number of markets that had until recently been a hotbed of investor activity.
As speculators withdraw from the market in San Diego, for instance, the number of investors buying property has fallen by nearly half, estimates Russ Valone, president of MarketPointe Realty Advisors, which tracks the San Diego housing market.
In the Phoenix area, as many as 30 percent of properties for sale are owned by investors, said Jay Butler, director of the Arizona Real Estate Center at Arizona State University. Six months ago, most investors were buying rather than selling, he said. The shift has helped to drive up inventories of homes for sale in the Phoenix area, which climbed to 22,340 in October from 8,600 in April, according to data from the Arizona Regional Multiple Listing Service.
In the latest sign that the housing market is cooling, the National Association of Realtors said Tuesday that its index of pending home sales dropped 3.2 percent in October. The reading is the lowest since March.
It’s too early to tell just how a pullback by investors will affect the broader housing market, but their impact on the housing boom has been considerable.
Investors accounted for 9.6 percent of mortgages used to buy homes in the first nine months of this year, the most recent data available, up from 6.7 percent in 2002, according to LoanPerformance, a unit of First American. But the investor share began to drop in the third quarter, the firm said. The figures don’t include second homes that might also provide rental income and serve as an investment.
Myrtle Beach remains one of the nation’s top markets in investor-driven purchases, according to LoanPerformance. It said 18 percent of Myrtle Beach’s housing purchases in the first 10 months of this year were by investors, the 10th-highest rate among metro areas nationwide. The other areas were in California, Idaho, Oregon and Florida.
A softening in investor demand is likely to accentuate any slowdown in home sales, said David Berson, chief economist at mortgage giant Fannie Mae.
He estimates that home sales will fall 10.4 percent over the next two years, largely because of a decline in investor and second-home purchases.
Another concern is that investors will be quicker to sell if prices soften, accentuating any downturn, particularly in areas where speculation has been most prevalent. Some of the most vulnerable markets include Daytona, Fla., Las Vegas, Phoenix and Fresno and Bakersfield, Calif., according to Credit Suisse First Boston analyst Dennis McGill.
Sunday, November 20, 2005
Myrtle Beach Condos Still Seducing Investors
New Resorts LLC of Myrtle Beach keeps real estate sales and resort condo developments soaring, despite reports of slowdown in other areas.
Myrtle Beach, SC (PR WEB) November 14, 2005 --The demand for preconstruction condos in Myrtle Beach is still surpassing everyone's expectations, even in what would normally be the slowest time of the year.
“Good quality resort condominiums like the Anderson Ocean Club or the Prince Resort Myrtle Beach, will always stand above the garden variety projects that are so often seen along the coastline”, says David O'Connell, of New Resorts.com in North Myrtle Beach.
“We have seen no evidence of a “bubble”, and in fact, sales of Myrtle Beach condos are still moving at a brisk pace. We’re having a hard time finding enough good agents to hire so we can handle the amount of leads that are coming in”, he adds.
Ernst and Young, a national housing authority, recently announced to the San Francisco NAR that despite such warning signs as housing sales slowing, and prices falling in some Florida cities or Las Vegas, they do not expect any bubble in the housing market to pop.
E&Y's director of housing, Steve Friedman, was also quoted as saying, “There’s no national housing bubble, only ‘bubblettes’ in markets like Las Vegas.”
O’Connell is often contacted by buyers and brokers that would normally be re-investing in areas like Florida or the west coast, but are choosing Myrtle Beach real estate instead. Even as those other areas of the country seem to have reached a peak, Myrtle Beach real estate still seems to be under-priced and the SC coast continues to be one of the hottest areas for real estate investments.
What took other companies 15+ years to achieve, New Resorts.com has done in the first 12 months of operation and touts itself now as the “Number One Source for Preconstruction in Myrtle Beach”.
Indeed, he has just signed a marketing agreement for the single largest resort condominium project on the Grand Strand, the new Sea Mist Resort.
The company bases its marketing efforts on a high internet profile, newspaper and magazine saturation, and an ever-growing number of satisfied investors. Many of them have been getting in early and purchasing multiple units and putting them up for resale, “flipping” them as soon as the developer sells out his inventory.
“I’ve done extremely well with the 6 units I’ve purchased in the last 13 months”, says Dr Steve Miller of Florida. He goes on to say, “Compared to other markets around the country, I get a lot more for my money in Myrtle Beach.”
Partnering with ACC Investments, who specializes in 1031 exchanges and other investment services, New Resorts.com is able to offer a complete package of real estate investments and capital gains management programs for every type of investor.
“We represent the leading developers and the finest resorts in the Grand Strand,” O’Connell states. "And oceanfront investment condos will always be in high demand.”
Strand Capital Group LLC is one of the most prestigious resort developers in the Grand Strand area, and has commissioned New Resorts to market what Mayor Mark McBride described as the largest condominium resort development in the city limits of Myrtle Beach. The New Sea Mist Resort redevelopment encompasses 12 acres and promises to improve downtown Myrtle Beach in a major way, providing as many as 1700 new and conversion condos for the crowd of vacationers that arrive at the beach every year.
The project begins with a conversion of the existing 268 Oceanfront/Ocean-View studios in the Driftwood and Tide Buildings, which are now pre-selling at unbelievably low prices starting in the low $100,000’s.
Phase A of the pre-construction redevelopment is also releasing as the "New Oasis" tower, with 1, 2, 3, and 4 Bedroom deluxe condominiums from $399,900 to $700,000+.
Ernst and Young reported, “Many baby boomers have paid off the mortgages on their primary homes and are investing some of the equity in second or vacation homes.”
Friedman was also quoted as saying, “With 79 million affluent boomers, demand for second homes will continue to grow as more boomers reach retirement age.”
David O’Connell confidently shares this opinion, and says that he expects Myrtle Beach and New Resorts.com both to continue to grow and improve for many years to come.
UPDATE: David O'Connell has since partnered with Mike Benton and founded The Myrtle Beach Home Store and The Myrtle Beach Condo Store. The new companies specialize in resale condos in Myrtle Beach, as well as residential homes and investment property in Myrtle Beach.
See our other press releases:
Myrtle Beach Waterway Condos
Preconstruction Condos
Preconstruction News
Preconstruction Condos Directory
Coral Beach Resort Condos
Myrtle Beach, SC (PR WEB) November 14, 2005 --The demand for preconstruction condos in Myrtle Beach is still surpassing everyone's expectations, even in what would normally be the slowest time of the year.
“Good quality resort condominiums like the Anderson Ocean Club or the Prince Resort Myrtle Beach, will always stand above the garden variety projects that are so often seen along the coastline”, says David O'Connell, of New Resorts.com in North Myrtle Beach.
“We have seen no evidence of a “bubble”, and in fact, sales of Myrtle Beach condos are still moving at a brisk pace. We’re having a hard time finding enough good agents to hire so we can handle the amount of leads that are coming in”, he adds.
Ernst and Young, a national housing authority, recently announced to the San Francisco NAR that despite such warning signs as housing sales slowing, and prices falling in some Florida cities or Las Vegas, they do not expect any bubble in the housing market to pop.
E&Y's director of housing, Steve Friedman, was also quoted as saying, “There’s no national housing bubble, only ‘bubblettes’ in markets like Las Vegas.”
O’Connell is often contacted by buyers and brokers that would normally be re-investing in areas like Florida or the west coast, but are choosing Myrtle Beach real estate instead. Even as those other areas of the country seem to have reached a peak, Myrtle Beach real estate still seems to be under-priced and the SC coast continues to be one of the hottest areas for real estate investments.
What took other companies 15+ years to achieve, New Resorts.com has done in the first 12 months of operation and touts itself now as the “Number One Source for Preconstruction in Myrtle Beach”.
Indeed, he has just signed a marketing agreement for the single largest resort condominium project on the Grand Strand, the new Sea Mist Resort.
The company bases its marketing efforts on a high internet profile, newspaper and magazine saturation, and an ever-growing number of satisfied investors. Many of them have been getting in early and purchasing multiple units and putting them up for resale, “flipping” them as soon as the developer sells out his inventory.
“I’ve done extremely well with the 6 units I’ve purchased in the last 13 months”, says Dr Steve Miller of Florida. He goes on to say, “Compared to other markets around the country, I get a lot more for my money in Myrtle Beach.”
Partnering with ACC Investments, who specializes in 1031 exchanges and other investment services, New Resorts.com is able to offer a complete package of real estate investments and capital gains management programs for every type of investor.
“We represent the leading developers and the finest resorts in the Grand Strand,” O’Connell states. "And oceanfront investment condos will always be in high demand.”
Strand Capital Group LLC is one of the most prestigious resort developers in the Grand Strand area, and has commissioned New Resorts to market what Mayor Mark McBride described as the largest condominium resort development in the city limits of Myrtle Beach. The New Sea Mist Resort redevelopment encompasses 12 acres and promises to improve downtown Myrtle Beach in a major way, providing as many as 1700 new and conversion condos for the crowd of vacationers that arrive at the beach every year.
The project begins with a conversion of the existing 268 Oceanfront/Ocean-View studios in the Driftwood and Tide Buildings, which are now pre-selling at unbelievably low prices starting in the low $100,000’s.
Phase A of the pre-construction redevelopment is also releasing as the "New Oasis" tower, with 1, 2, 3, and 4 Bedroom deluxe condominiums from $399,900 to $700,000+.
Ernst and Young reported, “Many baby boomers have paid off the mortgages on their primary homes and are investing some of the equity in second or vacation homes.”
Friedman was also quoted as saying, “With 79 million affluent boomers, demand for second homes will continue to grow as more boomers reach retirement age.”
David O’Connell confidently shares this opinion, and says that he expects Myrtle Beach and New Resorts.com both to continue to grow and improve for many years to come.
UPDATE: David O'Connell has since partnered with Mike Benton and founded The Myrtle Beach Home Store and The Myrtle Beach Condo Store. The new companies specialize in resale condos in Myrtle Beach, as well as residential homes and investment property in Myrtle Beach.
See our other press releases:
Myrtle Beach Waterway Condos
Preconstruction Condos
Preconstruction News
Preconstruction Condos Directory
Coral Beach Resort Condos
Saturday, November 12, 2005
Condominiums Lead Housing Downturn; Ernst & Young Housing Authority Says Market Experiencing Normal Cyclical Slowdown, Not a ''Pop'' in Housing Bubble
SAN FRANCISCO--(BUSINESS WIRE)--Nov. 2, 2005--
Led by condominiums, housing sales are slowing and prices are falling in bellwether markets such as Dade County, Florida, Las Vegas, Miami and Orange County, a national housing authority told writers and editors at the National Association of Realtors Conference here. "The leading housing indicators are flashing yellow in a growing number of markets including Phoenix, Boston, and Washington, D.C.," said Steve Friedman, Ernst & Young's national director of housing (703/747-1940).
Among other indicators, cancellation rates for purchases of new homes are increasing, with the rate in Dade County jumping to 20%; appraised values are dropping below contract prices; houses are remaining on the market longer; buyer incentives are returning; and more real estate agents are suggesting buyers reduce initial asking prices. "Agents are very attuned to the market," Friedman noted. "They know when a house has been on the market too long and it's appropriate to suggest a price cut."
Despite such warning signs, Friedman said he does not expect any bubble in the housing market to pop. "There's no national housing bubble, only 'bubblettes' in markets like Las Vegas," he said.
At 4.9 months, the average time that homes are on the market is up 20% from a year earlier but still indicative of a healthy market. In Manhattan, strong demand from foreign buyers and Wall Street executives continues to push up condominium prices, which have nearly doubled from $600 to $1100 a square foot in the past three years. In supply-constrained California, a slowdown in demand is taking some of the pressure off prices that have been driven up by an entitlement process that takes up to seven years -- in San Diego County, permit costs have added $50,000 to the price of a home. In contrast with the rapid runup on the coasts, housing prices in markets such as Ft. Worth, Chicago, and Minneapolis have increased at a moderate rate and sales have remained strong. "There are many markets such as Austin, TX and Boise that are not only affordable but great places to live," Friedman said.
While the first home market is showing signs of slowing -- which Friedman said will also give the growing ranks of realtors a challenge in 2006 -- the second home market remains strong.
Many baby boomers have paid off the mortgages on their primary homes and are investing some of the equity in second or vacation homes. "With 79 million affluent boomers, demand for second homes will continue to grow as more boomers reach retirement age," Friedman said.
Second home demand has been particularly strong in Florida, where foreign buyers have taken advantage of a weak dollar to buy homes.
In Orlando, European buyers, led by the British, own one of every three homes, according to Friedman.
Contacts
For Ernst & Young
Andrew Neilly,
925-930-9848
For Myrtle Beach condos for sale and preconstruction, contact New Resorts, LLC
Led by condominiums, housing sales are slowing and prices are falling in bellwether markets such as Dade County, Florida, Las Vegas, Miami and Orange County, a national housing authority told writers and editors at the National Association of Realtors Conference here. "The leading housing indicators are flashing yellow in a growing number of markets including Phoenix, Boston, and Washington, D.C.," said Steve Friedman, Ernst & Young's national director of housing (703/747-1940).
Among other indicators, cancellation rates for purchases of new homes are increasing, with the rate in Dade County jumping to 20%; appraised values are dropping below contract prices; houses are remaining on the market longer; buyer incentives are returning; and more real estate agents are suggesting buyers reduce initial asking prices. "Agents are very attuned to the market," Friedman noted. "They know when a house has been on the market too long and it's appropriate to suggest a price cut."
Despite such warning signs, Friedman said he does not expect any bubble in the housing market to pop. "There's no national housing bubble, only 'bubblettes' in markets like Las Vegas," he said.
At 4.9 months, the average time that homes are on the market is up 20% from a year earlier but still indicative of a healthy market. In Manhattan, strong demand from foreign buyers and Wall Street executives continues to push up condominium prices, which have nearly doubled from $600 to $1100 a square foot in the past three years. In supply-constrained California, a slowdown in demand is taking some of the pressure off prices that have been driven up by an entitlement process that takes up to seven years -- in San Diego County, permit costs have added $50,000 to the price of a home. In contrast with the rapid runup on the coasts, housing prices in markets such as Ft. Worth, Chicago, and Minneapolis have increased at a moderate rate and sales have remained strong. "There are many markets such as Austin, TX and Boise that are not only affordable but great places to live," Friedman said.
While the first home market is showing signs of slowing -- which Friedman said will also give the growing ranks of realtors a challenge in 2006 -- the second home market remains strong.
Many baby boomers have paid off the mortgages on their primary homes and are investing some of the equity in second or vacation homes. "With 79 million affluent boomers, demand for second homes will continue to grow as more boomers reach retirement age," Friedman said.
Second home demand has been particularly strong in Florida, where foreign buyers have taken advantage of a weak dollar to buy homes.
In Orlando, European buyers, led by the British, own one of every three homes, according to Friedman.
Contacts
For Ernst & Young
Andrew Neilly,
925-930-9848
For Myrtle Beach condos for sale and preconstruction, contact New Resorts, LLC
Tuesday, November 1, 2005
Myrtle Beach Timeshares
Life is a beach in Myrtle Beach timeshares—a beautiful, golden sand beach, just perfect for sunning, surfing, scuba diving, and parasailing.
Unless of course, you think life in Myrtle Beach time shares is really eighteen fabulous holes of golf. The Myrtle Beach area is home to 120+ outstanding golf courses, many designed by the greatest architects of the game, including Robert Trent Jones, Nicklaus, Palmer, Fazio, and Pete Dye. And for swings that need a little fine-tuning, Myrtle Beach boasts more golf schools per square mile than any other place on the planet.
When you enjoy vacations at Myrtle Beach resort condos, life can be beachcombing, water parks, zoos, dinner theater, or sport fishing. It can be ocean or inland waterway kayaking, and the rumble of NASCAR and NASCAR sanctioned races on the tracks of Myrtle Beach Speedway and nearby Darlington Raceway. In fact, life at Myrtle Beach timeshares is almost any recreation or relaxation pleasure you want it to be and always a jumbo-size serving of vacation fun.
Why not make your vacation planning simple?
Choose the destination everyone in the family will enjoy. Choose the luxurious resort condos of Myrtle Beach, South Carolina.
Buy time share, because there’s simply no good reason to blow your hard earned dollars on hotel or motel accommodations that offer too little, charge too much, and leave you with nothing to show for the money you spend. Instead, learn the impressive facts about owning timeshare resort condos. Explore the web pages of Sell My Timeshare Now, and get solid, reliable information for timeshare consumers. We high standards for our timeshare selling guide lines and we will assist you in every aspect of timeshare buying, renting, or selling.
Once you understand timeshare selling guidelines and learn how easy it is to buy timeshare, you can be on holiday in a Myrtle Beach vacation resort that you actually own. Except you’ll be bypassing the big-ticket pricing and the on-going headaches that plague sole owners of vacation cottages and summer homes. You’ll be paying only for the days and nights you actually use and you’ll be leaving the headaches to those who never bothered to learn sound information for timeshare consumers.
Experience the pleasure of striping your ball down the immaculate fairways of the world class TPC at Myrtle Beach. Perhaps you can schedule to be in Myrtle Beach at the right time to enjoy one of the most delightful tournament events in golf—the annual Hootie and the Blowfish Monday after the Masters Tournament.
Expect to see PGA stars (joined by celebrities from the entertainment world) playing a very mellow game of golf as they wind down after their week in Augusta. You’ll never have a better opportunity to see the pros at play—when the pressure is off and it’s all about the game they love.
And if you play a few rounds at The International World Tour Course, with its holes that replicate Amen Corner, TPC Sawgrass, Winged Foot, and St. Andrews, you’ll feel as if you’ve played the greatest golf courses in the world. But remember, when you buy time share vacations, you don’t have to holiday in the same location year after year. You have the option to exchange your vacation week for time at first class resorts around the globe. With exchange opportunities in over 90 countries worldwide, you can tee it up one year at a Myrtle Beach's "St. Andrews look alike", and the next year be in Scotland, playing The Road Hole on the Old Course herself.
So go ahead and pack your swimwear, your golf shoes, and your really comfortable clothes. Myrtle Beach is all about mellow. Myrtle Beach is where you go to relax. Take advantage of Sell My Timeshare Now’s reliable, up-to-the-minute information for timeshare consumers. Let our friendly and experienced staff lend you a hand with the fine points of timeshare selling guide lines.
Because when life is a timeshare holiday, life is good.
Posted by Jeremy DeCoste
SellMyTimeshareNow
1 877 815 4227 ext 249
Wednesday, October 26, 2005
A Shoreline (Increasingly) Edged in Condos
Living In Spencer Estates, the Bronx
Robert Caplin/The New York Times
Condos being built at the Sunset Cove complex in the Spencer Estates section of the Bronx.
By CLAIRE WILSON
Published: October 23, 2005
DAN HENDERSON loves sitting on the patio of his new waterfront condominium in the Spencer Estates neighborhood of the Bronx. When guests come, he points out all the landmarks around Eastchester Bay, from Pelham Bay Park and City Island down around to the Throgs Neck Bridge.
When he is alone gazing out over the bay, he isn't wondering how this "big Throgs Neck boy," as he describes himself, landed in such a beautiful spot. He's wondering, he said, "where are the striped bass hiding so when I go out tomorrow I will be able to find them?"
The life-long fisherman and boat owner, who is a retired carpenter, and his wife, Judith, a retired school secretary, are among many newcomers to a cluster of condo complexes dotting the shore in Spencer Estates, a small enclave dominated by one- and two-family homes nestled between Pelham Bay Park and the Country Club section.
More on this article...
More on Preconstruction Condos in Myrtle Beach
More on Condos - Investing in Real Estate - 1031 Tax Exchange
Robert Caplin/The New York Times
Condos being built at the Sunset Cove complex in the Spencer Estates section of the Bronx.
By CLAIRE WILSON
Published: October 23, 2005
DAN HENDERSON loves sitting on the patio of his new waterfront condominium in the Spencer Estates neighborhood of the Bronx. When guests come, he points out all the landmarks around Eastchester Bay, from Pelham Bay Park and City Island down around to the Throgs Neck Bridge.
When he is alone gazing out over the bay, he isn't wondering how this "big Throgs Neck boy," as he describes himself, landed in such a beautiful spot. He's wondering, he said, "where are the striped bass hiding so when I go out tomorrow I will be able to find them?"
The life-long fisherman and boat owner, who is a retired carpenter, and his wife, Judith, a retired school secretary, are among many newcomers to a cluster of condo complexes dotting the shore in Spencer Estates, a small enclave dominated by one- and two-family homes nestled between Pelham Bay Park and the Country Club section.
More on this article...
More on Preconstruction Condos in Myrtle Beach
More on Condos - Investing in Real Estate - 1031 Tax Exchange
Sunday, October 23, 2005
AFFORDABLE Myrtle Beach Condos For Sale
Instead of writing a professional press release about this new project, I've decided to just write my own personal opinion to spread the news.
Myrtle Beach "proper" (as versus North Myrtle Beach and surrounding areas) is a long stretch of beach...from about 82nd Ave North, down to 1st Ave, all the way to 27th Ave South. That's about 100 blocks. They estimate 8 blocks to a mile, so that's about 12-13 miles of beach and condos.
The more residential, and more expensive part of Myrtle Beach real estate is on the north end... from 32nd Ave North on up. It's not necessarily any better...just has always been considered the rich section.
The Pavilion area is located around 9th Ave North, for about 5 blocks either way. That's always been the most run-down section, although they are renovating it as fast as land can be bought and condos can be put up. Now the Myrtle Beach Boardwalk has added a lot to the area as well. The last I heard, they were going to move the Pavilion out on the bypass and that whole area would be condos eventually.
Anyway, it's always been a little less expensive on the south side of the pavilion...
The biggest and best of the developers in Myrtle Beach, Strand Capital Groups, has taken on the renovation of a "village" known as Sea Mist Resort, which is just a little south of the Pavilion area. The Sea Mist starts on Ocean Blvd at 11th Ave South and goes for 4 blocks south, and also includes 3 rows back. It's a HUGE development, and has always had everything from the oceanfront tower motel rooms to cottages, going clear back to Hwy 17. It has the area's largest waterpark, all kinds of pools, spas, lazy rivers, stores, restaurants -- you name it. It's the closest thing to an "all inclusive" resort that we have.
Sea Mist has thousands of loyal vacationers...generations have stayed there and wouldn't stay anywhere else. It's uncrowded, but close to everything. You can do beach, pool, store, and dinner without driving anywhere. It's been there, and immensely popular, since I was a kid.
Now they are going high-rise. This development will probably be the biggest, the fanciest, and the most sought-after place in Myrtle Beach in the next few years. They are doing the renovation through PUD, which is approved by the city for the betterment of the public. It will add things of beauty, like public parks, extra- nicer parking, traffic control, safety measures, and all types of things that will make Myrtle Beach an even better place to live and vacation in.
The renovation of Oceanfront Condos in Myrtle Beach, such as Sea Mist, begins with 2 oceanfront hotel towers, the Driftwood and the Tides Buildings. They will be converted into efficiency condos, completely upgraded, and made like new. THIS is what I want to bring to everyone's attention. Because they are studio apartments, these units are being priced between $109,000 and $199,000 FOR OCEANFRONT. There is no other resort in Myrtle Beach that is priced this low, and anyone who can afford a second home can afford this.
I'm familiar with almost everything in both North Myrtle and Myrtle, and I have yet to see anything that I would get this excited over. Anyone who wants to invest in Myrtle Beach preconstruction real estate but can't afford the $500,000 PLUS price of an oceanfront condo should look into this. When they are gone, I will bet anything that there will never be another investment resort with prices like this.
The Sea Mist condos are going to go fast. They are selling in conjunction with a new preconstruction condo tower that is also "angled oceanfront", called the New Oasis. These luxury condos will also be perfect for everyone that loves the area and the project, and prefers larger units.
The entire 12 acre project will be renovated as an ongoing thing, brand new top-of-the-line pools, indoor pools, fitness centers, lazy rivers, and everything else will eventually be a part of this fantastic resort. The Sea Mist is a once in a lifetime opportunity for people like me, who aren't multi-millionaires.
Can you tell I'm excited? :-)
Saturday, October 22, 2005
1031 Exchange Information
For those lucky investors that wisely bought a preconstruction condo a year or so ago, or if you are soon to realize a profit from any kind of real estate transaction, it may be very smart to find out about your tax liabilities and investigate doing a 1031 tax exchange .
This is another area that the folks at the Myrtle Beach Condo Store have expertise in. David O'Connell can advise and set up a Tenants in Common program or self directed IRA and save you on capital gains taxes in a big way.
Below is the information on 1031 exchanges from the IRS.org website. I urge anyone who has realized a large profit from preconstruction investing to look into this.
Fill out the contact form on the Myrtle Beach Condo Store website and mention 1031 exchange in the comments section.
www.myrtlebeachcondostore.com
**************************
Generally, if you exchange business or investment property solely for business or investment property of a like kind, no gain or loss is recognized under Internal Revenue Code Section 1031.
If, as part of the exchange, you also receive other (not like-kind) property or money, gain is recognized to the extent of the other property and money received, but a loss is not recognized.
Section 1031 does not apply to exchanges of inventory, stocks, bonds, notes, other securities or evidence of indebtedness, or certain other assets.
Like-Kind Property Properties are of like kind if they are of the same nature or character, even if they differ in grade or quality. Personal properties of a like class are like-kind properties. However, livestock of different sexes are not like-kind properties.
Also, personal property used predominantly in the United States and personal property used predominantly outside the United States are not like-kind properties.
Real properties generally are of like kind, regardless of whether the properties are improved or unimproved. However, real property in the United States and real property outside the United States are not like-kind properties.
Additional Resources
Publication 544, Sales and Other Dispositions of Assets (PDF)
Form 8824, Like-Kind Exchanges (PDF)
This is another area that the folks at the Myrtle Beach Condo Store have expertise in. David O'Connell can advise and set up a Tenants in Common program or self directed IRA and save you on capital gains taxes in a big way.
Below is the information on 1031 exchanges from the IRS.org website. I urge anyone who has realized a large profit from preconstruction investing to look into this.
Fill out the contact form on the Myrtle Beach Condo Store website and mention 1031 exchange in the comments section.
www.myrtlebeachcondostore.com
**************************
Generally, if you exchange business or investment property solely for business or investment property of a like kind, no gain or loss is recognized under Internal Revenue Code Section 1031.
If, as part of the exchange, you also receive other (not like-kind) property or money, gain is recognized to the extent of the other property and money received, but a loss is not recognized.
Section 1031 does not apply to exchanges of inventory, stocks, bonds, notes, other securities or evidence of indebtedness, or certain other assets.
Like-Kind Property Properties are of like kind if they are of the same nature or character, even if they differ in grade or quality. Personal properties of a like class are like-kind properties. However, livestock of different sexes are not like-kind properties.
Also, personal property used predominantly in the United States and personal property used predominantly outside the United States are not like-kind properties.
Real properties generally are of like kind, regardless of whether the properties are improved or unimproved. However, real property in the United States and real property outside the United States are not like-kind properties.
Additional Resources
Publication 544, Sales and Other Dispositions of Assets (PDF)
Form 8824, Like-Kind Exchanges (PDF)
Thursday, October 20, 2005
Special report: Boom or bubble?
Wednesday, October 19, 2005
By PRASHANT GOPAL
STAFF WRITER
Houman Sarmasti took up a new hobby a few years ago: flipping real estate.
Sarmasti began putting down deposits on condos and town houses before they were built and then cashed them out as their value appreciated. The 33-year-old electronics distributor says he has pocketed more than $160,000 by buying and quickly reselling homes in Teaneck, Edgewater and Cocoa Beach, Fla.
He recently put a deposit on a $399,000 condo at the planned Grand Cascades Lodge condo-hotel, part of the Crystal Springs golf resort in Sussex County. Sarmasti isn't sure whether he'll flip the new condo or keep it as a weekend retreat, but he's confident things will work out fine.
"I don't see how you can lose money," he says. "You might not gain a lot, but I don't think you can lose, especially the way real estate is going."
That faith in real estate values has convinced an ever-growing number of homeowners that one home is just not enough. And this surge in second-home purchases is helping to pace the real estate boom, while raising concerns about a bubble nearing the bursting point.
More than one-third of all American homes purchased in 2004 were for investment or vacation purposes, according to a recent study by the National Association of Realtors.
And buyers are increasingly taking on debt for the properties. Federal Reserve Chairman Alan Greenspan, who has warned of "froth in certain housing markets," noted last month that "mortgage originations for second-home purchases rose from 7 percent of total purchase originations in 2000 to twice that at the end of last year."
There is evidence the trend is especially strong in New Jersey, with its wealth and vacation destinations. In Atlantic and Cape May counties, about 38 percent of mortgages this year were for second homes, according to LoanPerformance, a subsidiary of First American Real Estate Solutions. Only Myrtle Beach, S.C., and Naples, Fla., have a higher percentage of second mortgages, the company says.....MORE
Myrtle Beach condos for sale
By PRASHANT GOPAL
STAFF WRITER
Houman Sarmasti took up a new hobby a few years ago: flipping real estate.
Sarmasti began putting down deposits on condos and town houses before they were built and then cashed them out as their value appreciated. The 33-year-old electronics distributor says he has pocketed more than $160,000 by buying and quickly reselling homes in Teaneck, Edgewater and Cocoa Beach, Fla.
He recently put a deposit on a $399,000 condo at the planned Grand Cascades Lodge condo-hotel, part of the Crystal Springs golf resort in Sussex County. Sarmasti isn't sure whether he'll flip the new condo or keep it as a weekend retreat, but he's confident things will work out fine.
"I don't see how you can lose money," he says. "You might not gain a lot, but I don't think you can lose, especially the way real estate is going."
That faith in real estate values has convinced an ever-growing number of homeowners that one home is just not enough. And this surge in second-home purchases is helping to pace the real estate boom, while raising concerns about a bubble nearing the bursting point.
More than one-third of all American homes purchased in 2004 were for investment or vacation purposes, according to a recent study by the National Association of Realtors.
And buyers are increasingly taking on debt for the properties. Federal Reserve Chairman Alan Greenspan, who has warned of "froth in certain housing markets," noted last month that "mortgage originations for second-home purchases rose from 7 percent of total purchase originations in 2000 to twice that at the end of last year."
There is evidence the trend is especially strong in New Jersey, with its wealth and vacation destinations. In Atlantic and Cape May counties, about 38 percent of mortgages this year were for second homes, according to LoanPerformance, a subsidiary of First American Real Estate Solutions. Only Myrtle Beach, S.C., and Naples, Fla., have a higher percentage of second mortgages, the company says.....MORE
Myrtle Beach condos for sale
Thursday, October 13, 2005
Real Estate SEO tips
I got an email from a realtor that I exchanged links with the other day and answered it. It was a pretty good Q & A, so I thought I might post it here.
From: A Realtor
To: Jan
Sent: Monday, October 10, 2005 8:14 AM
Subject: RE: My Realtor® agent site links to your site
First off I sincerely appreciate the fact that you have taken the time to share your knowledge with a total stranger. I would be more than happy to exchange home page links with you.
If I could quickly ask you a few more questions you may be able to steer me in the right direction.
Here is a list of things I am trying now to promote my site. Please tell me if they are a waste of time.
1.Generating XML sitemaps and submitting them to google weekly
Excellent, except you don't need to "submit" them. That's what RSS and XML do automatically.
2. Using web position4 to optimize my site for certain keywords and to track my performance
Would not use any kind of software at all. It's against the TOS of all search engines.
3. Just starting to use RSS Feeds to display my listings for newsreaders.
Excellent
4. Thinking about writing real estate blogs or using a real estate message board on my site.
The very best thing you can do is a real estate blog. See mine...
www.myrtlebeachwebdesign.com/blog/real-estate-web-blog.html
5. Reciprocal linking with every large directory I can find like Reals.com and Realestateabc.com etc...
Not every one. Be sure the links are straight html anchor text and not redirected or javascript. Most are.
6. Linking to a handful of top 100 lists
I've not seen any that helped or were very good PR. Only good if they are permanent.
7. Paying a few local web directories for animated gif links www.directory.com www.another-directory.com I doubt if any graphic link does you much good. Maybe a little if you be sure to use Alt text with keywords. Probably a waste unless it's for advertising and not SEO.
8. Paying realtor.com to be able to "enhance" our listings (add more photos and text)
Again, be sure it's not a redirected link. Check the PR of the page your link is on. That said, Realtor.com is a very highly popular website, so for advertising potential, it might be worth alot. I don't advise my customers to do it, but many do. I don't advise against it if the links are done right. I think REALS.com and most of its affiliate sites are the best directory links, and they are free. There are some other excellent free real estate directories out there, too.
9. Submitting to every free search engine I can find.
Directory maybe...search engine, I wouldn't. See above.
Is google still using PR links? Where can you find out your PR Rating.
Download the Google Toolbar from Google site and you can see the PR of every site in your browser. Yes, links are just as important as ever with Google, if that's what your question is.
I've been using Alexa to get a general feel for how well my competitors are doing. Are there any other methods you would recommend for tracking both your progress and that of your competitors?
I don't use Alexa nor track progress. When it shows, it shows...and I cheer...:-)
Thank you for the suggestions. It is difficult learning all of this from scratch, never knowing if the things I read on the web from various sources will actually help promote my site or are a waste of time. One last question, how much should I expect to pay a good real estate SEO and how often will they have to update the site?
I have been paid as much as $10,000 on one site that wanted me bad enough. Thank God I was able to do the job! It was a scary few weeks. I wouldn't take full payment until it was done, either. A good average might be about $1000-5000, depending on whether they do the site from scratch or just go over yours for you or your webmaster to make the changes.
There are not very many (if any) good real estate SEO companies per se. There are a several outstanding SEO companies that don't necessarily specialize in real estate. They can do an excellent job, but some still use interior link pages and charge an ongoing fee to obtain hundreds of links. Getting a company to optimize your text is a good idea. Getting an SEO copywriter is even a better idea. The links you should either do yourself or even better, do press releases, post on forums, write articles, and other ways of getting your links out there. Be sure to get on Google and Yahoo LOCAL listings.
I do not recommend interior links pages for real estate site optimization any more. That's just my personal opinion, as I see pages full of links being downgraded by Google every day. Yahoo despises large numbers of links, too. You can check the PR of the page your site would be on, but it's just as likely to be dropped to near nothing in the next update. The best thing to do other than what I mentioned above is to contact fellow realtors and create a referral network.
That way it serves you both ways. Most web-savvy realtors are now doing this.
It doesn't hurt to have SOME interior page links, but I wouldn't waste my time and money having an SEO company to do them. I don't even create links pages on my new sites. Haven't for over a year.
Make sure your titles use the correct keyphrases, research WHICH keyphrases to use for your city/area, and make sure each individual page has it's own metatags.
Newsflash for Newbies: Google does NOT count Metatags except for the title and possibly the description tag. Yahoo is the only one that does, as far as I know.
Hope this is good information for those who might ask the same questions....:-)
Most of my stuff is about Myrtle Beach Condos. Pay attention to the links in this blog. That's why blogs are so good!
From: A Realtor
To: Jan
Sent: Monday, October 10, 2005 8:14 AM
Subject: RE: My Realtor® agent site links to your site
First off I sincerely appreciate the fact that you have taken the time to share your knowledge with a total stranger. I would be more than happy to exchange home page links with you.
If I could quickly ask you a few more questions you may be able to steer me in the right direction.
Here is a list of things I am trying now to promote my site. Please tell me if they are a waste of time.
1.Generating XML sitemaps and submitting them to google weekly
Excellent, except you don't need to "submit" them. That's what RSS and XML do automatically.
2. Using web position4 to optimize my site for certain keywords and to track my performance
Would not use any kind of software at all. It's against the TOS of all search engines.
3. Just starting to use RSS Feeds to display my listings for newsreaders.
Excellent
4. Thinking about writing real estate blogs or using a real estate message board on my site.
The very best thing you can do is a real estate blog. See mine...
www.myrtlebeachwebdesign.com/blog/real-estate-web-blog.html
5. Reciprocal linking with every large directory I can find like Reals.com and Realestateabc.com etc...
Not every one. Be sure the links are straight html anchor text and not redirected or javascript. Most are.
6. Linking to a handful of top 100 lists
I've not seen any that helped or were very good PR. Only good if they are permanent.
7. Paying a few local web directories for animated gif links www.directory.com www.another-directory.com I doubt if any graphic link does you much good. Maybe a little if you be sure to use Alt text with keywords. Probably a waste unless it's for advertising and not SEO.
8. Paying realtor.com to be able to "enhance" our listings (add more photos and text)
Again, be sure it's not a redirected link. Check the PR of the page your link is on. That said, Realtor.com is a very highly popular website, so for advertising potential, it might be worth alot. I don't advise my customers to do it, but many do. I don't advise against it if the links are done right. I think REALS.com and most of its affiliate sites are the best directory links, and they are free. There are some other excellent free real estate directories out there, too.
9. Submitting to every free search engine I can find.
Directory maybe...search engine, I wouldn't. See above.
Is google still using PR links? Where can you find out your PR Rating.
Download the Google Toolbar from Google site and you can see the PR of every site in your browser. Yes, links are just as important as ever with Google, if that's what your question is.
I've been using Alexa to get a general feel for how well my competitors are doing. Are there any other methods you would recommend for tracking both your progress and that of your competitors?
I don't use Alexa nor track progress. When it shows, it shows...and I cheer...:-)
Thank you for the suggestions. It is difficult learning all of this from scratch, never knowing if the things I read on the web from various sources will actually help promote my site or are a waste of time. One last question, how much should I expect to pay a good real estate SEO and how often will they have to update the site?
I have been paid as much as $10,000 on one site that wanted me bad enough. Thank God I was able to do the job! It was a scary few weeks. I wouldn't take full payment until it was done, either. A good average might be about $1000-5000, depending on whether they do the site from scratch or just go over yours for you or your webmaster to make the changes.
There are not very many (if any) good real estate SEO companies per se. There are a several outstanding SEO companies that don't necessarily specialize in real estate. They can do an excellent job, but some still use interior link pages and charge an ongoing fee to obtain hundreds of links. Getting a company to optimize your text is a good idea. Getting an SEO copywriter is even a better idea. The links you should either do yourself or even better, do press releases, post on forums, write articles, and other ways of getting your links out there. Be sure to get on Google and Yahoo LOCAL listings.
I do not recommend interior links pages for real estate site optimization any more. That's just my personal opinion, as I see pages full of links being downgraded by Google every day. Yahoo despises large numbers of links, too. You can check the PR of the page your site would be on, but it's just as likely to be dropped to near nothing in the next update. The best thing to do other than what I mentioned above is to contact fellow realtors and create a referral network.
That way it serves you both ways. Most web-savvy realtors are now doing this.
It doesn't hurt to have SOME interior page links, but I wouldn't waste my time and money having an SEO company to do them. I don't even create links pages on my new sites. Haven't for over a year.
Make sure your titles use the correct keyphrases, research WHICH keyphrases to use for your city/area, and make sure each individual page has it's own metatags.
Newsflash for Newbies: Google does NOT count Metatags except for the title and possibly the description tag. Yahoo is the only one that does, as far as I know.
Hope this is good information for those who might ask the same questions....:-)
Most of my stuff is about Myrtle Beach Condos. Pay attention to the links in this blog. That's why blogs are so good!
Saturday, October 8, 2005
Preconstruction Boom Creates Statistics Problems in Myrtle Beach
For once I have decided to list my own rant about things that I see, being exposed to realtors and real estate people day in and day out.
I'm not a realtor, agent, broker, seller, or even a buyer. I just do websites and real estate marketing and SEO advice, mostly to real estate agents.
In the Myrtle Beach real estate market right now, there are as many as 15 condo resorts going up at the same time. It takes about 2 years from sales release to closing, and there are numerous ones in different stages right now. I may be underestimating. Maybe there are 25-30 or even more that are either "reserved" or being purchased right now.
On average there might be 300 units in each building...usually 1, 2 or 3 bedroom units both on oceanfront and on the sides. Most often they will be furnished, so they'll all basically look alike.
Just to simplify, lets say out of the 300 there are 50 of each kind...(1 bedroom oceanfront, 1 bedroom oceanview, etc) So 50 of them are identical in most cases.
When a nice project is released, an company like New Resorts LLC in North Myrtle Beach can often sell them out in less than a week. It varies according to the project, location, and whether it's a new preconstruction or a hotel conversion. New construction often sells faster, although to me, a hotel conversion is the better deal...even though the units may be smaller.
Personally, (and I was a tourist for 30 years before I was a resident in Myrtle Beach) I think most vacationers are most interested in the location and the amenities...not whether their rooms have 400 sq ft or 700 sq ft. After all, they aren't going to live in them...just stay there for a week or less. Granted, if you are among those lucky enough to be able to afford to buy an oceanfront condo in a grand resort for your own personal enjoyment, then it matters. But even with that scenario, I've seen the majority of the owners still be more concerned with that rental income than they are with their family being less cramped for a week. Seldom do THEY stay more than a week at the time either...so it's all the same.
Again, I think a hotel conversion in Myrtle Beach is the best investment. My opinion. Take it for what it's worth. Find out what the rental income is on a one bedroom in Coral Beach Resort after it's converted, as versus a one bedroom in Avista Resort in Ocean Drive. Not a completely fair comparison due to their locations...but I'll bet there won't be alot of difference. Coral Beach units are 200K plus. Avista is probably 400K plus right now.
Anyway, back to my original subject...the way the condos are being built right now....
If there are even 10 resorts going up at the same time and they have 300 units, then that is 3000 condos that are for sale...or DOES IT?
A recent article in The Sun News, Condos Crowd Listings, drew quite a bit of attention from the people I know who are presently investing in preconstruction.
To quote:
"A clampdown by the Coastal Carolinas Association of Realtors two months ago on agents who weren't entering listings also played a role." NO KIDDING!
Real estate investors are a breed apart. I know quite a few of them now. With preconstruction investing, it's not who you are or how much money you have, but who you know. The ones who do this do it for a living. They talk amongst themselves. They have made close friends with the largest developers. I would say that often over half of the best units in a preconstruction project are sold over the phone and on paper for 3 months before the project is even made public.
So now lets estimate that there are actually only 1500 of these units that will actually be offered to Joe Blow who casually looks in the MLS to see what's for sale this week.
But wait...maybe not. The internet is the hottest commodity to real estate sales that exists right now. I haven't seen the numbers lately, but MY OWN OPINION would be that a good 70% of all homes and investment properties are sold right now at least in part from internet exposure. I would even say in this area it could be as high as 80%. I deal with most of the most important real estate websites in the area, and I've seen several small Myrtle Beach condo rental companies become multi-million dollar real estate sales machines because of their website.
The many smaller investors out there have not formed a relationship with a developer...they don't even know the developers in a particular area. But what they have done is to get on the mailing list of this same top preconstruction marketing company (New Resorts) and every time a project is released, emails are shot out immediately announcing it, and notifying this group of its upcoming availability. I would estimate that another 50 units per project are reserved and no longer available from this method...again in only a day or two after release or sometimes BEFORE release. So there goes another 500 units. We're down to 1000. We've got 10 projects, so that's 100 units per project left, and maybe 6 kinds of rooms mixed in that. So let's estimate 17 units of each type per resort that are actually ON the market as it's being actively released.
Our local Board of Realtors just raised a stink and are demanding that preconstruction developers or marketers list all the units, INDIVIDUALLY in the MLS listings, every time they have a new project. That means listing the amenities, square footage, all the details on 3000 units at any given time. That also means maintaining them...removing the ones that are sold out of those individual listings. If they are sold prior to release, then they need to be listed and then marked sold and removed. It represents hours and hours of computer work, and a virtual paperwork nightmare. They are actually FINING the sales companies everytime they don't list a project. Some are reacting by withdrawing their membership to the local board...and I can't blame them a bit. It's a ridiculous situation...all so they can write articles about "bubbles" and spout statistics about prices escalating and foreclosures being emminent. Enter John Stossell on 20/20 or 60 Minutes or whatever show he's on, who tells all the masses that REAL ESTATE AGENTS are driving up costs of homes now. Utter crap.
Check a Myrtle Beach MLS listing for a condo right now and all you see are pages and pages of duplicate entries. The BOR is telling the world there are 3000 new condos for sale right now in Myrtle Beach. There's probably not 1/3 of that available. Joe Blow gets tired of trying to search for a condo by digging through 5 pages of the same thing. He may miss out on a nice investment condo. Nothing is accomplished, and nobody is helped except the BOR, and they may publish inflammatory statistics and dire warnings of impending markets crashing.
Yes, Virginia, there IS a bubble...and it's an AIR BUBBLE in the minds of the ones who set the rules and publish this kind of stuff.
Meanwhile, the investors are doing just fine, the developers are doing just fine, the public is getting scared to take advantage of the opportunity to make really good profits, and the agents are left to deal with the problem.
And to back up my rant, the Board of Realtors in Miami, which is 25 times the size of our Myrtle Beach market, has FORBIDDEN agents from listing preconstruction projects. Why? Because of exactly what I've talked about here.
Again, this is just my under-educated opinion. Take it for what it's worth. I can say this with pretty good authority. Articles like this one in the newspaper and on tv are half the problem. They can create a "bubble" almost by themselves just from insisting or even insinuating that there is one.
Though sales of older condos and houses have slowed in Myrtle Beach, preconstruction and new resorts are as strong as ever, and internet marketing is part of the equation...a big part. I truly believe that Myrtle Beach has the best investment real estate in the nation right now.
I'm not a realtor, agent, broker, seller, or even a buyer. I just do websites and real estate marketing and SEO advice, mostly to real estate agents.
In the Myrtle Beach real estate market right now, there are as many as 15 condo resorts going up at the same time. It takes about 2 years from sales release to closing, and there are numerous ones in different stages right now. I may be underestimating. Maybe there are 25-30 or even more that are either "reserved" or being purchased right now.
On average there might be 300 units in each building...usually 1, 2 or 3 bedroom units both on oceanfront and on the sides. Most often they will be furnished, so they'll all basically look alike.
Just to simplify, lets say out of the 300 there are 50 of each kind...(1 bedroom oceanfront, 1 bedroom oceanview, etc) So 50 of them are identical in most cases.
When a nice project is released, an company like New Resorts LLC in North Myrtle Beach can often sell them out in less than a week. It varies according to the project, location, and whether it's a new preconstruction or a hotel conversion. New construction often sells faster, although to me, a hotel conversion is the better deal...even though the units may be smaller.
Personally, (and I was a tourist for 30 years before I was a resident in Myrtle Beach) I think most vacationers are most interested in the location and the amenities...not whether their rooms have 400 sq ft or 700 sq ft. After all, they aren't going to live in them...just stay there for a week or less. Granted, if you are among those lucky enough to be able to afford to buy an oceanfront condo in a grand resort for your own personal enjoyment, then it matters. But even with that scenario, I've seen the majority of the owners still be more concerned with that rental income than they are with their family being less cramped for a week. Seldom do THEY stay more than a week at the time either...so it's all the same.
Again, I think a hotel conversion in Myrtle Beach is the best investment. My opinion. Take it for what it's worth. Find out what the rental income is on a one bedroom in Coral Beach Resort after it's converted, as versus a one bedroom in Avista Resort in Ocean Drive. Not a completely fair comparison due to their locations...but I'll bet there won't be alot of difference. Coral Beach units are 200K plus. Avista is probably 400K plus right now.
Anyway, back to my original subject...the way the condos are being built right now....
If there are even 10 resorts going up at the same time and they have 300 units, then that is 3000 condos that are for sale...or DOES IT?
A recent article in The Sun News, Condos Crowd Listings, drew quite a bit of attention from the people I know who are presently investing in preconstruction.
To quote:
More condominiums are for sale on the Grand Strand than at any
time in the past 10 years, according to the Multiple Listing
Service.
The increased supply was caused in part by a slowdown in
the frenzied condo market, leaving condos on the market longer, Realtors and
analysts say.
A clampdown by the Coastal Carolinas Association of
Realtors two months ago on agents who weren't entering listings also played a
role. Officials say that problem has been resolved, increasing the number of
properties on the service.
"A clampdown by the Coastal Carolinas Association of Realtors two months ago on agents who weren't entering listings also played a role." NO KIDDING!
Real estate investors are a breed apart. I know quite a few of them now. With preconstruction investing, it's not who you are or how much money you have, but who you know. The ones who do this do it for a living. They talk amongst themselves. They have made close friends with the largest developers. I would say that often over half of the best units in a preconstruction project are sold over the phone and on paper for 3 months before the project is even made public.
So now lets estimate that there are actually only 1500 of these units that will actually be offered to Joe Blow who casually looks in the MLS to see what's for sale this week.
But wait...maybe not. The internet is the hottest commodity to real estate sales that exists right now. I haven't seen the numbers lately, but MY OWN OPINION would be that a good 70% of all homes and investment properties are sold right now at least in part from internet exposure. I would even say in this area it could be as high as 80%. I deal with most of the most important real estate websites in the area, and I've seen several small Myrtle Beach condo rental companies become multi-million dollar real estate sales machines because of their website.
The many smaller investors out there have not formed a relationship with a developer...they don't even know the developers in a particular area. But what they have done is to get on the mailing list of this same top preconstruction marketing company (New Resorts) and every time a project is released, emails are shot out immediately announcing it, and notifying this group of its upcoming availability. I would estimate that another 50 units per project are reserved and no longer available from this method...again in only a day or two after release or sometimes BEFORE release. So there goes another 500 units. We're down to 1000. We've got 10 projects, so that's 100 units per project left, and maybe 6 kinds of rooms mixed in that. So let's estimate 17 units of each type per resort that are actually ON the market as it's being actively released.
Our local Board of Realtors just raised a stink and are demanding that preconstruction developers or marketers list all the units, INDIVIDUALLY in the MLS listings, every time they have a new project. That means listing the amenities, square footage, all the details on 3000 units at any given time. That also means maintaining them...removing the ones that are sold out of those individual listings. If they are sold prior to release, then they need to be listed and then marked sold and removed. It represents hours and hours of computer work, and a virtual paperwork nightmare. They are actually FINING the sales companies everytime they don't list a project. Some are reacting by withdrawing their membership to the local board...and I can't blame them a bit. It's a ridiculous situation...all so they can write articles about "bubbles" and spout statistics about prices escalating and foreclosures being emminent. Enter John Stossell on 20/20 or 60 Minutes or whatever show he's on, who tells all the masses that REAL ESTATE AGENTS are driving up costs of homes now. Utter crap.
Check a Myrtle Beach MLS listing for a condo right now and all you see are pages and pages of duplicate entries. The BOR is telling the world there are 3000 new condos for sale right now in Myrtle Beach. There's probably not 1/3 of that available. Joe Blow gets tired of trying to search for a condo by digging through 5 pages of the same thing. He may miss out on a nice investment condo. Nothing is accomplished, and nobody is helped except the BOR, and they may publish inflammatory statistics and dire warnings of impending markets crashing.
Yes, Virginia, there IS a bubble...and it's an AIR BUBBLE in the minds of the ones who set the rules and publish this kind of stuff.
Meanwhile, the investors are doing just fine, the developers are doing just fine, the public is getting scared to take advantage of the opportunity to make really good profits, and the agents are left to deal with the problem.
And to back up my rant, the Board of Realtors in Miami, which is 25 times the size of our Myrtle Beach market, has FORBIDDEN agents from listing preconstruction projects. Why? Because of exactly what I've talked about here.
Again, this is just my under-educated opinion. Take it for what it's worth. I can say this with pretty good authority. Articles like this one in the newspaper and on tv are half the problem. They can create a "bubble" almost by themselves just from insisting or even insinuating that there is one.
Though sales of older condos and houses have slowed in Myrtle Beach, preconstruction and new resorts are as strong as ever, and internet marketing is part of the equation...a big part. I truly believe that Myrtle Beach has the best investment real estate in the nation right now.
Tuesday, October 4, 2005
Broadway apartment complex gets condo makeover
Posted on Tue, Oct. 04, 2005
REAL ESTATE
MB site example of market trend
By Jenny Burns
The Sun News
Starting what experts say is a new trend in local Myrtle Beach real estate, Broadway Station Apartments in Myrtle Beach will become condominiums by next year.
Analysts say the apartment complex won't be the last to go condo, as skyrocketing home prices and a sizzling market make condo conversion attractive. The area's median home price - meaning half of the homes sold for more and half for less -jumped from $160,000 in 2004 to $178,900 in the second quarter. MORE...
REAL ESTATE
MB site example of market trend
By Jenny Burns
The Sun News
Starting what experts say is a new trend in local Myrtle Beach real estate, Broadway Station Apartments in Myrtle Beach will become condominiums by next year.
Analysts say the apartment complex won't be the last to go condo, as skyrocketing home prices and a sizzling market make condo conversion attractive. The area's median home price - meaning half of the homes sold for more and half for less -jumped from $160,000 in 2004 to $178,900 in the second quarter. MORE...
Sunday, October 2, 2005
Speculators, residents gamble on Vegas housing boom
By Jerry Hirsch
Los Angeles Times
LAS VEGAS - The boom in high-rise condo projects in this city's canyon of casinos known as the Strip has spawned its own new status symbol - the celebrity resident.
About 8,000 condominium units are under construction or about to start, according to SalesTraq, a Las Vegas real estate information company. It's a building explosion fueled in part by speculators in the torrid real estate market here and the desire of buyers from California and Asia to own a piece of Sin City's action.
But like everything Vegas does, this building bonanza comes with an extra helping of glitz: Developers are using Hollywood stars to make their projects stand out from the more than 100 residential skyscrapers proposed for Las Vegas.
Leonardo DiCaprio and Tobey Maguire have purchased units at the Panorama Towers complex. Jessica Simpson has reserved a unit at Palms Place, the 50-story high-rise planned at the Palms Hotel and Casino. Baseball Hall of Famer Reggie Jackson has snagged a spot at the Icon Las Vegas.
"I am sure these celebrities are getting very good deals," said Peter Dennehy, senior vice president of Sullivan Group Real Estate Advisors in San Diego. "It is a marketing thing. People want to live near the stars."
But some analysts wonder if the market will be left with a Las Vegas-size hangover in the form of a real estate bubble fueled by the large number of speculators - estimated to be as high as 40 percent - who never intend to live in the units they are buying.
The high-rise condo market has proved to be particularly sensitive to market gyrations, said Delores Conway, a University of Southern California real estate economist.
Las Vegas isn't the only town that is going vertical. High-rise living, a long-standing tradition in New York, has spread to the likes of Boston, Denver, Miami, San Francisco and Kansas City, Mo. At least half a dozen new Southern California condo towers are planned for the Los Angeles area.
The Myrtle Beach area also is wrestling with a desire by developers to raise height limits on condo towers. ( Myrtle Beach condos for sale )
Nationally, the number of condominium and town home development construction starts jumped 38 percent to 120,000 last year, according to the U.S. Census Bureau. And that came on top of a 23 percent gain in the previous year.
"Cities across the United States are booming with these projects and many of the developments are quite spectacular," said Max Neiman, senior fellow at the Public Policy Institute of California.
With so many high-end properties on the drawing board, it's easy for a development to get lost in the crowd. That's where the celebrities come in, assuming the real estate equivalent of a walk-on role: Most aren't investors in projects, but their presence gives condo buyers the hope of an occasional star sighting near the mailboxes.
Don't expect anything so crass as celebrity advertising endorsements; Vegas developers prefer the subtle approach, placing tidbits in gossip columns and prominently displaying celeb glamour shots in sales offices.
"It makes a building cool and hip," said Dennehy, the real estate consultant. "You always want to sell lifestyle when you are selling condo projects like these."
Even in Las Vegas, once one of the more affordable real estate markets, no one considers these condos to be inexpensive housing.
A 972-square-foot one-bedroom unit at Icon Las Vegas, the future Reggie Jackson hangout that Related Cos. is building, starts north of $600,000.
Janine Hogg, a San Francisco Bay Area transplant who owns a smoothie shop in the Las Vegas suburb of Summerlin, has placed down payments on four condos in three projects and is considering purchasing a fifth.
"Real estate investments are my retirement strategy," Hogg said. "Hopefully I am not gauging the market wrong."
Las Vegas real estate analyst John Restrepo estimates that speculators such as Hogg make up as much as 40 percent of the market. This has prompted some of the projects to limit purchases to one per person and to require buyers to close escrow before allowing a unit to be resold.
The number of investors in the Las Vegas condo market should be a matter of concern to both developers and other buyers, said Conway of USC.
"Las Vegas prices are not going to go up forever," she said, "and when the market shifts, a percentage of speculators like that is enough to change the price of all the units in the building."
Speculators tend to liquidate their positions quickly if their investments are losing money or aren't producing the expected returns, Conway said, sending prices tumbling.
But some real estate experts say the unique nature of the Las Vegas market helps insulate it from the type of steep downturn seen in other markets.
The city is running out of developable land, and people continue to pour into the region, said Steve Bottfeld, an analyst with the local research company Marketing Solutions.
The Las Vegas metropolitan area had a population of 1 million in 1997, and that's expected to double by 2007, he said.
Moreover, with 38 million visitors annually, the city remains one of the nation's top vacation destinations and will maintain its attraction for second-home buyers, Bottfeld said.
Finally, no one expects all the projects on the books to get built.
"There's not enough skilled labor in this town to build even half of what has been proposed," said Richard Lee, a vice president in the Las Vegas office of First American Title Co.
End....
See a fabulous new condo resort in the Turks and Caicos real estate market.
Los Angeles Times
LAS VEGAS - The boom in high-rise condo projects in this city's canyon of casinos known as the Strip has spawned its own new status symbol - the celebrity resident.
About 8,000 condominium units are under construction or about to start, according to SalesTraq, a Las Vegas real estate information company. It's a building explosion fueled in part by speculators in the torrid real estate market here and the desire of buyers from California and Asia to own a piece of Sin City's action.
But like everything Vegas does, this building bonanza comes with an extra helping of glitz: Developers are using Hollywood stars to make their projects stand out from the more than 100 residential skyscrapers proposed for Las Vegas.
Leonardo DiCaprio and Tobey Maguire have purchased units at the Panorama Towers complex. Jessica Simpson has reserved a unit at Palms Place, the 50-story high-rise planned at the Palms Hotel and Casino. Baseball Hall of Famer Reggie Jackson has snagged a spot at the Icon Las Vegas.
"I am sure these celebrities are getting very good deals," said Peter Dennehy, senior vice president of Sullivan Group Real Estate Advisors in San Diego. "It is a marketing thing. People want to live near the stars."
But some analysts wonder if the market will be left with a Las Vegas-size hangover in the form of a real estate bubble fueled by the large number of speculators - estimated to be as high as 40 percent - who never intend to live in the units they are buying.
The high-rise condo market has proved to be particularly sensitive to market gyrations, said Delores Conway, a University of Southern California real estate economist.
Las Vegas isn't the only town that is going vertical. High-rise living, a long-standing tradition in New York, has spread to the likes of Boston, Denver, Miami, San Francisco and Kansas City, Mo. At least half a dozen new Southern California condo towers are planned for the Los Angeles area.
The Myrtle Beach area also is wrestling with a desire by developers to raise height limits on condo towers. ( Myrtle Beach condos for sale )
Nationally, the number of condominium and town home development construction starts jumped 38 percent to 120,000 last year, according to the U.S. Census Bureau. And that came on top of a 23 percent gain in the previous year.
"Cities across the United States are booming with these projects and many of the developments are quite spectacular," said Max Neiman, senior fellow at the Public Policy Institute of California.
With so many high-end properties on the drawing board, it's easy for a development to get lost in the crowd. That's where the celebrities come in, assuming the real estate equivalent of a walk-on role: Most aren't investors in projects, but their presence gives condo buyers the hope of an occasional star sighting near the mailboxes.
Don't expect anything so crass as celebrity advertising endorsements; Vegas developers prefer the subtle approach, placing tidbits in gossip columns and prominently displaying celeb glamour shots in sales offices.
"It makes a building cool and hip," said Dennehy, the real estate consultant. "You always want to sell lifestyle when you are selling condo projects like these."
Even in Las Vegas, once one of the more affordable real estate markets, no one considers these condos to be inexpensive housing.
A 972-square-foot one-bedroom unit at Icon Las Vegas, the future Reggie Jackson hangout that Related Cos. is building, starts north of $600,000.
Janine Hogg, a San Francisco Bay Area transplant who owns a smoothie shop in the Las Vegas suburb of Summerlin, has placed down payments on four condos in three projects and is considering purchasing a fifth.
"Real estate investments are my retirement strategy," Hogg said. "Hopefully I am not gauging the market wrong."
Las Vegas real estate analyst John Restrepo estimates that speculators such as Hogg make up as much as 40 percent of the market. This has prompted some of the projects to limit purchases to one per person and to require buyers to close escrow before allowing a unit to be resold.
The number of investors in the Las Vegas condo market should be a matter of concern to both developers and other buyers, said Conway of USC.
"Las Vegas prices are not going to go up forever," she said, "and when the market shifts, a percentage of speculators like that is enough to change the price of all the units in the building."
Speculators tend to liquidate their positions quickly if their investments are losing money or aren't producing the expected returns, Conway said, sending prices tumbling.
But some real estate experts say the unique nature of the Las Vegas market helps insulate it from the type of steep downturn seen in other markets.
The city is running out of developable land, and people continue to pour into the region, said Steve Bottfeld, an analyst with the local research company Marketing Solutions.
The Las Vegas metropolitan area had a population of 1 million in 1997, and that's expected to double by 2007, he said.
Moreover, with 38 million visitors annually, the city remains one of the nation's top vacation destinations and will maintain its attraction for second-home buyers, Bottfeld said.
Finally, no one expects all the projects on the books to get built.
"There's not enough skilled labor in this town to build even half of what has been proposed," said Richard Lee, a vice president in the Las Vegas office of First American Title Co.
End....
See a fabulous new condo resort in the Turks and Caicos real estate market.
Monday, September 19, 2005
Good and bad: Real estate boom changed face of Lee County
By Jeremy Cox
Sunday, September 18, 2005
Bonita Springs, Florida
A little more than a year after moving to Estero, Michael Burke has decided to sell his lucrative computer hardware company in Mentor, Ohio, along with its marketing offices in New York, Los Angeles and Washington. He’s trading in his old life for a real estate license.
“I’m just going where the money is and what excites me,” said Burke, a 43-year-old whose business minor from Kent State University was the only training he brought to his new trade. “It’s a gamble. You’re playing the odds.”
But the rapid success of his personal investments has made the south Lee County real estate market look like a sure bet.
Here’s just one example: Burke signed a contract to buy a three-bedroom, three-bathroom home in the Grandezza gated community off Ben Hill Griffin Parkway at the preconstruction price of $536,000. The home isn’t finished yet and Burke hasn’t closed on the property, but he already has it listed for sale for $799,000.
In case you haven’t noticed, Lee County, like much of the country, is swept up in a real estate craze. The median sales price of existing homes in July soared to $287,500, a 44 percent jump compared with the same month last year. The only area in Florida with a faster appreciation rate that month was Orlando, according to the Florida Association of Realtors.
Nationwide, the National Association of Realtors said Lee County ranked second, behind only the Phoenix area, in home appreciation in the second quarter of 2005.
Even if the white-hot pace of real estate investment cools off tomorrow — which, some experts warn, is a real possibility — it will have left an indelible imprint on the landscape and culture of Lee County.
In less than 2 years, the boom has:
— Changed the look of whole communities. The value of permits for new single-family homes hit $3.1 billion in Lee County for the first eight months of this year, surpassing last year’s 12-month record of $3 billion. Gated communities now cover about 60 percent of Bonita Springs’ landscape. The city’s population is expected to swell 40 percent in the next eight years, from 41,070 to 57,300. Meanwhile, orange groves, sand mines and cow pastures in eastern Estero are turning into swanky housing developments; the community is projected to grow by more than 20,000 in that same period.
— Redefined the meaning of “affordable.” The rich are displacing the poor and the middle class. In San Carlos Park, once a haven for the working class, you are more than five times more likely to find a home priced at $500,000 and above than for $200,000 and below. Builders complain about the lack of skilled laborers but continue to construct homes out of the price range of their workers.
— Made millionaires out of many but left others behind. With some notable exceptions, that division breaks along racial and ethnic lines. Hispanics, in particular, are much less likely to own their own homes than whites. Although Hispanics make up just 16 percent of Lee’s population, a Bonita-based affordable housing developer estimates that 40 percent of its clientele are of Hispanic origin.
— Transformed neighborhoods into mini-stock exchanges. Investors are cashing out quickly and moving their money to the next “flip,” “spec” or “fixer-upper.” Between July 2004 and July 2005, some 509 homes and condominiums sold twice in Bonita Springs, Estero and San Carlos Park, with an average profit of $67,072 between sales, a Bonita Daily News analysis of Lee County Property Appraiser records shows. Rampant speculation is deepening fears that a real estate bubble has settled in Lee County and could burst without notice.
— Become the talk of the town. From the stands surrounding Little League baseball fields to the line at the supermarket to the company breakroom, tales of buying and selling, of remodeling and refinancing, are inescapable. Everyone, it seems, knows someone who bought a two-bedroom in Bonita Springs in the 1990s for $125,000 that has quadrupled in value. Everyone, it also seems, wants a share of the fortune that awaits, literally, at every corner.
“Real estate investing has become vogue”, said Mark Mathosian, financial administrator for the FBI investigation department in Fort Myers. “You don’t really hear a lot of horror stories, and that’s one of the problems. You don’t hear about the guy who bought the townhouse in Bonita and couldn’t sell it. We’ve been in an up-direction market for so long, people just assume there’s no downside.”....MORE
Sunday, September 18, 2005
Bonita Springs, Florida
A little more than a year after moving to Estero, Michael Burke has decided to sell his lucrative computer hardware company in Mentor, Ohio, along with its marketing offices in New York, Los Angeles and Washington. He’s trading in his old life for a real estate license.
“I’m just going where the money is and what excites me,” said Burke, a 43-year-old whose business minor from Kent State University was the only training he brought to his new trade. “It’s a gamble. You’re playing the odds.”
But the rapid success of his personal investments has made the south Lee County real estate market look like a sure bet.
Here’s just one example: Burke signed a contract to buy a three-bedroom, three-bathroom home in the Grandezza gated community off Ben Hill Griffin Parkway at the preconstruction price of $536,000. The home isn’t finished yet and Burke hasn’t closed on the property, but he already has it listed for sale for $799,000.
In case you haven’t noticed, Lee County, like much of the country, is swept up in a real estate craze. The median sales price of existing homes in July soared to $287,500, a 44 percent jump compared with the same month last year. The only area in Florida with a faster appreciation rate that month was Orlando, according to the Florida Association of Realtors.
Nationwide, the National Association of Realtors said Lee County ranked second, behind only the Phoenix area, in home appreciation in the second quarter of 2005.
Even if the white-hot pace of real estate investment cools off tomorrow — which, some experts warn, is a real possibility — it will have left an indelible imprint on the landscape and culture of Lee County.
In less than 2 years, the boom has:
— Changed the look of whole communities. The value of permits for new single-family homes hit $3.1 billion in Lee County for the first eight months of this year, surpassing last year’s 12-month record of $3 billion. Gated communities now cover about 60 percent of Bonita Springs’ landscape. The city’s population is expected to swell 40 percent in the next eight years, from 41,070 to 57,300. Meanwhile, orange groves, sand mines and cow pastures in eastern Estero are turning into swanky housing developments; the community is projected to grow by more than 20,000 in that same period.
— Redefined the meaning of “affordable.” The rich are displacing the poor and the middle class. In San Carlos Park, once a haven for the working class, you are more than five times more likely to find a home priced at $500,000 and above than for $200,000 and below. Builders complain about the lack of skilled laborers but continue to construct homes out of the price range of their workers.
— Made millionaires out of many but left others behind. With some notable exceptions, that division breaks along racial and ethnic lines. Hispanics, in particular, are much less likely to own their own homes than whites. Although Hispanics make up just 16 percent of Lee’s population, a Bonita-based affordable housing developer estimates that 40 percent of its clientele are of Hispanic origin.
— Transformed neighborhoods into mini-stock exchanges. Investors are cashing out quickly and moving their money to the next “flip,” “spec” or “fixer-upper.” Between July 2004 and July 2005, some 509 homes and condominiums sold twice in Bonita Springs, Estero and San Carlos Park, with an average profit of $67,072 between sales, a Bonita Daily News analysis of Lee County Property Appraiser records shows. Rampant speculation is deepening fears that a real estate bubble has settled in Lee County and could burst without notice.
— Become the talk of the town. From the stands surrounding Little League baseball fields to the line at the supermarket to the company breakroom, tales of buying and selling, of remodeling and refinancing, are inescapable. Everyone, it seems, knows someone who bought a two-bedroom in Bonita Springs in the 1990s for $125,000 that has quadrupled in value. Everyone, it also seems, wants a share of the fortune that awaits, literally, at every corner.
“Real estate investing has become vogue”, said Mark Mathosian, financial administrator for the FBI investigation department in Fort Myers. “You don’t really hear a lot of horror stories, and that’s one of the problems. You don’t hear about the guy who bought the townhouse in Bonita and couldn’t sell it. We’ve been in an up-direction market for so long, people just assume there’s no downside.”....MORE
Friday, September 16, 2005
A Word About SEO That Realtors Should Know
For those that are here to learn about preconstruction, this posting is probably not of interest.
But I do feel there are some realtors that look at this blog every now and then, and probably most have websites and are interested in that website's search engine ranking, and of course, Google is the big dog in search engines.
Those of us who do SEO for a hobby or for a living are all familiar with "Google Guy", this mysterious employee at Google who has acted as a go-between for us and our "godhead". His name is Matt Cutts, and he's now got his own EXCELLENT blog, in which he tries to answer questions that he's asked hundreds of times , and in such a way that it can be referenced later.
I recommend his blog for EVERYONE that has any interest in search engines or Google. He's a funny guy, an excellent writer, and thank goodness, someone that we can finally take as the gospel when he speaks.
That being said, I found this post on his blog today, and for realtors everywhere, you really SHOULD take note of this. I suffer from BO (Backlink Obsession...as he so cleverly quips) as much as anybody. I dream of PageRank at night. And this is something I've always thought, but never knew for sure. Now we know! Matt, if you see this, I love you! Haha.
From www.mattcutts.com/blog
What’s an update?
September 8, 2005 @ 12:01 pm · Filed under Google/SEO
(Normally I, you know, think before I post. I’m experimenting with the quick-post-with-very-little-thought technique here.)
What is an update? Google updates its index data, including backlinks and PageRank, continually and continuously. We only export new backlinks, PageRank, or directory data every three months or so though. (We started doing that last year when too many SEOs were suffering from “B.O.”, short for backlink obsession.)
When new backlinks/PageRank appear, we’ve already factored that into our rankings quite a while ago. So new backlinks/PageRank are fun to see, but it’s not an update; it’s just already-factored-in data being exported visibly for the first time in a while.
Google also crawls and updates its index every day, so different or more index data usually isn’t an update either. The term “everflux” is often used to describe the constant state of low-level changes as we crawl the web and rankings consequently change to a minor degree. That’s normal, and that’s not an update.
Usually, what registers with an update to the webmaster community is when we update an algorithm (or its data), change our scoring algorithms, or switch over to a new piece of infrastructure. Technically Update Gilligan is just backlink/PageRank data becoming visible once more, not a real update. There haven’t been any substantial algorithmic changes in our scoring in the last few days. I’m happy to try to give weather reports when we do our update scoring/algo data though.
Um, that’s all I can think of regarding taxonomies of updates, so I guess I’ll publish it.
But I do feel there are some realtors that look at this blog every now and then, and probably most have websites and are interested in that website's search engine ranking, and of course, Google is the big dog in search engines.
Those of us who do SEO for a hobby or for a living are all familiar with "Google Guy", this mysterious employee at Google who has acted as a go-between for us and our "godhead". His name is Matt Cutts, and he's now got his own EXCELLENT blog, in which he tries to answer questions that he's asked hundreds of times , and in such a way that it can be referenced later.
I recommend his blog for EVERYONE that has any interest in search engines or Google. He's a funny guy, an excellent writer, and thank goodness, someone that we can finally take as the gospel when he speaks.
That being said, I found this post on his blog today, and for realtors everywhere, you really SHOULD take note of this. I suffer from BO (Backlink Obsession...as he so cleverly quips) as much as anybody. I dream of PageRank at night. And this is something I've always thought, but never knew for sure. Now we know! Matt, if you see this, I love you! Haha.
From www.mattcutts.com/blog
What’s an update?
September 8, 2005 @ 12:01 pm · Filed under Google/SEO
(Normally I, you know, think before I post. I’m experimenting with the quick-post-with-very-little-thought technique here.)
What is an update? Google updates its index data, including backlinks and PageRank, continually and continuously. We only export new backlinks, PageRank, or directory data every three months or so though. (We started doing that last year when too many SEOs were suffering from “B.O.”, short for backlink obsession.)
When new backlinks/PageRank appear, we’ve already factored that into our rankings quite a while ago. So new backlinks/PageRank are fun to see, but it’s not an update; it’s just already-factored-in data being exported visibly for the first time in a while.
Google also crawls and updates its index every day, so different or more index data usually isn’t an update either. The term “everflux” is often used to describe the constant state of low-level changes as we crawl the web and rankings consequently change to a minor degree. That’s normal, and that’s not an update.
Usually, what registers with an update to the webmaster community is when we update an algorithm (or its data), change our scoring algorithms, or switch over to a new piece of infrastructure. Technically Update Gilligan is just backlink/PageRank data becoming visible once more, not a real update. There haven’t been any substantial algorithmic changes in our scoring in the last few days. I’m happy to try to give weather reports when we do our update scoring/algo data though.
Um, that’s all I can think of regarding taxonomies of updates, so I guess I’ll publish it.
Thursday, September 8, 2005
Myrtle Beach Condo Market Steers Clear of Lawsuits Like These
As prices go up, sellers back out, suits say
Lawsuits by would-be home buyers allege that South Florida developers are wiggling out of sales contracts to capitalize on price increases.
BY MATTHEW HAGGMAN
mhaggman@herald.com
Zoilo C. Nieto plunked down a $209,000 deposit in May for a $1.04 million condo unit at Trump Palace with visions of a sleek new residence to go with his plans to expand his language school business into South Florida.
But weeks later, after assurances the unit was his, the 42-year-old from New Jersey claims he was told the Sunny Isles Beach condo was sold to someone else for more money.
Last month, he sued the developer, Dezer Development, charging fraud and unfair trade practices, among several allegations. He is seeking either to get the condo or to get back his money with interest -- and whatever profit the developer reaped by selling to another buyer.
Amid South Florida's red-hot real estate boom, fueled by speculative investors, a growing chorus of complaints are arising from home buyers who are accusing developers of playing fast and loose with contracts for preconstruction condominiums and single-family homes.
MORE...
Lawsuits by would-be home buyers allege that South Florida developers are wiggling out of sales contracts to capitalize on price increases.
BY MATTHEW HAGGMAN
mhaggman@herald.com
Zoilo C. Nieto plunked down a $209,000 deposit in May for a $1.04 million condo unit at Trump Palace with visions of a sleek new residence to go with his plans to expand his language school business into South Florida.
But weeks later, after assurances the unit was his, the 42-year-old from New Jersey claims he was told the Sunny Isles Beach condo was sold to someone else for more money.
Last month, he sued the developer, Dezer Development, charging fraud and unfair trade practices, among several allegations. He is seeking either to get the condo or to get back his money with interest -- and whatever profit the developer reaped by selling to another buyer.
Amid South Florida's red-hot real estate boom, fueled by speculative investors, a growing chorus of complaints are arising from home buyers who are accusing developers of playing fast and loose with contracts for preconstruction condominiums and single-family homes.
MORE...
Sunday, August 28, 2005
Preconstruction - Updates in Myrtle Beach
The Coral Beach Resort & Suites
AMENITIES
Ten Pools-Indoor & Oceanfront
Multiple Jacuzzi's
Lazy River
On-site Bowling Alley
Exercise room
Sandbunkers Pool Bar & Grill
General Store
Room Service, Massage
Oceanfront & Angle OF
Other Restaurants on Site
Comedy Club
Now Taking Pre-Reservations!
Next week, we will be releasing two of the most unique new oceanfront preconstruction projects ever, in the heart of Myrtle Beach.
These are sure to sell out overnight!
Aqua Bay Resort
A New "South Beach" Architecture, and
Full Luxury Amenities
Anderson Ocean Club
New Preconstruction - Historic Downtown Favorite
Luxury Condominiums
including new phases of Prince Resort at the CherryGrove Pier
in North Myrtle Beach, the affordable renovation of the famous
Sea Mist Resort on the south end of Myrtle Beach, and a new
luxury resort called Park Place in Carolina Beach, North Carolina.
All preconstruction projects are "Artist's Renderings" and subject to change at any time by the Developers.
Thursday, August 18, 2005
Cuckoo for condos!
Get in early! Get out fast! Sound familiar? Everyone knows how the dotcom party ended. Right? Right?
August 18, 2005: 1:33 PM EDT By Stephen Gandel, MONEY Magazine
NEW YORK (MONEY Magazine) - Late May, early evening. Chris Cowen cools his heels in a Minneapolis restaurant, waiting for a table. His buddy Keith is 15 minutes late.
Cell phone rings. It's Keith. Got a proposition for you, Chris: a one-bedroom condo under construction in Scottsdale, Ariz. -- 1,800 miles away -- for $135,000. The catch: Only 60 seconds to decide. Sight unseen. Over the cell.
"It was a no-brainer," recalls Cowen, 32, who owns 28 condos (solo or with partners) in various stages of completion. Two months after his impulse buy, Cowen figures the unit's ultrafast appreciation has covered his $3,500 cash down payment 10 times over.
"I've already made $35,000," he crows.
Know this guy? If you don't, you probably will soon, because condos are to the real estate boom what Internet stocks were to the 1990s bull market. And like the Internet day-traders before them, the new condo flippers, with their talk of instant riches and easy money, are about to become the life of every cocktail party.
And why not? Condo prices have soared 80 percent in the past five years, making the same period's 40 percent rise for single-family homes look almost pokey. Developers are constructing new condo units at nearly twice the pace they were in 1999, and investors are literally lining up to buy one, two, three or more. In Miami, as much as 75 percent of some condo towers are investor-owned.
No cash? No problem. Banks, with their loosened lending standards, no-money-down loans and teaser mortgage rates, are making it easier than ever to be a mogul-in-training.
Chris Cowen is betting his retirement that the wonder years won't stop soon. He cashed out his 401(k) to put $246,000 into a highly leveraged condo portfolio that he thinks could sell for $6.2 million. Estimated equity so far: $868,000. Cowen is so bullish, he quit his corporate job at Siemens to develop his empire full time.
"Even if you make six figures, you still work for someone else, paying 40 percent taxes and putting in 60 hours a week. What do you get for that?" he scoffs.
A volatile mix
Mix it all together -- rising prices, record levels of construction, fast-and-loose mortgages and swelling ranks of new investors -- and you get a market more volatile than Tom Cruise.
"To some degree, what's driving condo prices is sheer greed," says economist Gleb Nachayev of Torto Wheaton Research, which forecasts a relatively mild drop of as much as 3 percent for U.S. housing prices overall in the next year. "Condo prices have increased faster than single-family homes -- and they will fall faster."
As they did little more than a decade ago. Overbuilt and over-concentrated in city centers, the condo market collapsed in the early '90s, smashing overstretched owners in the process.
No one knows when history will repeat itself. But c'mon: The easy money has been made. The right time to invest is not after a record five-year run-up in prices. It's not when the supply of new product is set to nearly double.
If you're really drawn to the market, you need a deeper understanding of what's driving prices up -- and what can drive them down. Above all, don't confuse what's worked in the recent past with what will work over the long haul.
The case for boom
Condos still have plenty going for them -- namely, 76 million baby boomers. You know the demographic drill by now: As they become empty-nesters and retirees, they'll sell their rambling homes in the burbs and move into yard work-free condos (or at least purchase them as second homes).
They're expected to continue flooding into aging-friendly locales like Arizona, Florida and Nevada, but they'll also be flocking to traditional city centers as downtowns become safer.
Don't forget the children of boomers, adds veteran condo investor and National Association of Realtors chief economist David Lareah. They'll need affordable places to get started, and many already see entry-level-priced condos and townhouses as a great way to build equity so that they can trade up.
"It's hard to concoct a scenario where condo prices collapse in most markets," Lareah argues.
A good condo pick that's soundly financed can be about as hassle-free as real estate investing gets. Gary Eldred, author of "Make Money with Condominiums," notes that association fees typically cover the standard repairs you'd have to oversee on a traditional house.
"Condos," Eldred says, "are perfect for people who want a passive investment."
Prices in some parts of the country look even more ridiculous when you compare them to the low rents that condos currently generate.
In Minneapolis, for instance, the average downtown condo sells for just over $256,000, up 77 percent from mid-2000. But area apartments rent for a measly $915 average a month, down from $918 four years ago, according to Torto Wheaton Research.
Even with a 20 percent down payment, a 30-year fixed-rate mortgage would cost $1,150 a month. This condo investor is $235 a month in the hole -- even before paying association fees and taxes.
Growing fears of overbuilding are also cause for pause. With so many condos being built today, one has to wonder: Who's gonna rent them? Apartment vacancy rates have been rising.
"My guess is construction is growing faster than demand in some markets," says Raphael Bostic of the University of Southern California's Lusk Center for Real Estate.
Perhaps most worrisome: The growth in condo investing mythology. Here are three whoppers that need reality checks.
MYTH: Get in early and you'll be guaranteed a profit.
Remember the lust for Internet IPOs? Ordinary investors bid up the stocks of hot little companies that hadn't even registered their first sale yet. Today's version is a preconstruction condo, where investors jockey to get into a project not yet built, certain the units will jump in value when completed.
But getting in early doesn't guarantee riches anymore. That's because developers have caught on to the demand and are now selling preconstruction properties at market prices, says Kimberly Kirschner, a Miami agent who specializes in new condos.
Also, developers are requiring buyers to reserve their units earlier -- as much as three years in advance. That's an awfully long time to assume a hot condo market will continue to boil.
So when it comes to preconstruction, skip that line. Instead, buy an existing unit. While preconstruction purchasers can wait up to three years with very little to show for it at the end, you can collect 36 months of rent to put toward paying off your mortgage and building equity. If prices continue to appreciate, great. But that's a cherry, not the whole sundae.
MYTH: Creative mortgages lower your payments and guarantee positive cash flow.
New twists on adjustable-rate mortgages and interest-only loans can make condo investing seem like a lark. But some of these things could slaughter you if prices fall when you have to sell.
The riskiest is called an option ARM, which features several payment choices each month, including a standard interest-and-principal payment, an interest-only payment and an interest-only minimum payment that's so low it doesn't cover the month's interest charge. The unpaid interest is rolled into the principal, meaning that -- yes -- you're charged interest on your unpaid interest.
Fort Lauderdale resident Bruce Palmer, 50, recently signed up for an option ARM that cuts his monthly payment on a $417,000 investment condo by $500. As a result, his two-bedroom in Fort Lauderdale should generate a profit of $350 a month.
Palmer, a commercial pilot, says he sees the risk. Paying the interest-only bare minimum means his mortgage is growing, not shrinking. If local prices were to drop, his loan balance could exceed the condo's value.
But Palmer is confident, building a war chest to snap up properties. "If I could leverage more," he says wistfully, "I would."
Author Gary Eldred worries about such sunny thinking. Most condo investors should avoid option ARMs, he says, and either put down more money to lower the monthly payment or consider buying -- gasp -- a less expensive unit.
Whatever your choice, Eldred says your expected rent should cover at least 70 percent of your total monthly costs. Tax write-offs on condo losses can help close some of that gap, he notes. (Up to $25,000 in losses, excluding mortgage-principal payments, can be charged against total income of less than $150,000.)
And he argues that rising rents should, over time, cover the rest. (With condo prices soaring, Eldred predicts that condo rents will follow as would-be buyers get priced out and rent.) More cautious investors would want their rent to cover 100 percent of carrying costs or more.
MYTH: You should buy in your backyard, where you know the landscape.
Too few condo investors recognize one of the best reasons to buy: It can help diversify your real estate holdings so that your portfolio doesn't rise and fall solely on hometown economics and events. (Even if property is a relative bargain in your area, buying wisely elsewhere can make more sense than buying too much property locally.)
New York City attorney Richard Savitt, 40, never thought about all this 18 months ago, when he abandoned hopes of investing in Big Apple condos and bought in Philadelphia instead.
"We just thought New York prices were crazy," he explains.
But it sure looks wise now. Savitt and four partners bought four one-bedroom condos, each around $300,000. Similar units now list for as much as $450,000.
To help you determine where to invest, take the average price at which units are selling in a city and divide it by the annual rent the average apartment there generates. That will produce a price-to-rent ratio. The lower the better. Houston, Atlanta and Philadelphia, for instance, still look relatively good, while New York City and San Francisco do not.
In Minneapolis, Cowen and four other investors who've become pals gather at a bar for their fortnightly meeting. Jahn Dyvik, a 42-year-old engineer who sold his Porsche Boxster to help fund more condo buys, says lower prices in neighboring St. Paul make that city the better bet.
The rest of the group is sticking with Minneapolis, where they think prices will rise faster. Two others have also sold their cars. All have home-equity loans.
Where are prices headed? Cowen's not sure. The long-term case for condos looks good, but all the building out there makes him nervous. "People have unrealistic profit expectations."
Not him, of course. "No one has a crystal ball. But the condos I've bought are going to go up."
August 18, 2005: 1:33 PM EDT By Stephen Gandel, MONEY Magazine
NEW YORK (MONEY Magazine) - Late May, early evening. Chris Cowen cools his heels in a Minneapolis restaurant, waiting for a table. His buddy Keith is 15 minutes late.
Cell phone rings. It's Keith. Got a proposition for you, Chris: a one-bedroom condo under construction in Scottsdale, Ariz. -- 1,800 miles away -- for $135,000. The catch: Only 60 seconds to decide. Sight unseen. Over the cell.
"It was a no-brainer," recalls Cowen, 32, who owns 28 condos (solo or with partners) in various stages of completion. Two months after his impulse buy, Cowen figures the unit's ultrafast appreciation has covered his $3,500 cash down payment 10 times over.
"I've already made $35,000," he crows.
Know this guy? If you don't, you probably will soon, because condos are to the real estate boom what Internet stocks were to the 1990s bull market. And like the Internet day-traders before them, the new condo flippers, with their talk of instant riches and easy money, are about to become the life of every cocktail party.
And why not? Condo prices have soared 80 percent in the past five years, making the same period's 40 percent rise for single-family homes look almost pokey. Developers are constructing new condo units at nearly twice the pace they were in 1999, and investors are literally lining up to buy one, two, three or more. In Miami, as much as 75 percent of some condo towers are investor-owned.
No cash? No problem. Banks, with their loosened lending standards, no-money-down loans and teaser mortgage rates, are making it easier than ever to be a mogul-in-training.
Chris Cowen is betting his retirement that the wonder years won't stop soon. He cashed out his 401(k) to put $246,000 into a highly leveraged condo portfolio that he thinks could sell for $6.2 million. Estimated equity so far: $868,000. Cowen is so bullish, he quit his corporate job at Siemens to develop his empire full time.
"Even if you make six figures, you still work for someone else, paying 40 percent taxes and putting in 60 hours a week. What do you get for that?" he scoffs.
A volatile mix
Mix it all together -- rising prices, record levels of construction, fast-and-loose mortgages and swelling ranks of new investors -- and you get a market more volatile than Tom Cruise.
"To some degree, what's driving condo prices is sheer greed," says economist Gleb Nachayev of Torto Wheaton Research, which forecasts a relatively mild drop of as much as 3 percent for U.S. housing prices overall in the next year. "Condo prices have increased faster than single-family homes -- and they will fall faster."
As they did little more than a decade ago. Overbuilt and over-concentrated in city centers, the condo market collapsed in the early '90s, smashing overstretched owners in the process.
No one knows when history will repeat itself. But c'mon: The easy money has been made. The right time to invest is not after a record five-year run-up in prices. It's not when the supply of new product is set to nearly double.
If you're really drawn to the market, you need a deeper understanding of what's driving prices up -- and what can drive them down. Above all, don't confuse what's worked in the recent past with what will work over the long haul.
The case for boom
Condos still have plenty going for them -- namely, 76 million baby boomers. You know the demographic drill by now: As they become empty-nesters and retirees, they'll sell their rambling homes in the burbs and move into yard work-free condos (or at least purchase them as second homes).
They're expected to continue flooding into aging-friendly locales like Arizona, Florida and Nevada, but they'll also be flocking to traditional city centers as downtowns become safer.
Don't forget the children of boomers, adds veteran condo investor and National Association of Realtors chief economist David Lareah. They'll need affordable places to get started, and many already see entry-level-priced condos and townhouses as a great way to build equity so that they can trade up.
"It's hard to concoct a scenario where condo prices collapse in most markets," Lareah argues.
A good condo pick that's soundly financed can be about as hassle-free as real estate investing gets. Gary Eldred, author of "Make Money with Condominiums," notes that association fees typically cover the standard repairs you'd have to oversee on a traditional house.
"Condos," Eldred says, "are perfect for people who want a passive investment."
The case for doom
Even the best investments can get overvalued, however. Condo fans cheer the 15 percent average annual spike in prices these past four years, but fail to remember that number was about 2 percent in the '90s. Last year, for the first time, the median condo cost more than the median home -- $9,500 more.
Even the best investments can get overvalued, however. Condo fans cheer the 15 percent average annual spike in prices these past four years, but fail to remember that number was about 2 percent in the '90s. Last year, for the first time, the median condo cost more than the median home -- $9,500 more.
Prices in some parts of the country look even more ridiculous when you compare them to the low rents that condos currently generate.
In Minneapolis, for instance, the average downtown condo sells for just over $256,000, up 77 percent from mid-2000. But area apartments rent for a measly $915 average a month, down from $918 four years ago, according to Torto Wheaton Research.
Even with a 20 percent down payment, a 30-year fixed-rate mortgage would cost $1,150 a month. This condo investor is $235 a month in the hole -- even before paying association fees and taxes.
Growing fears of overbuilding are also cause for pause. With so many condos being built today, one has to wonder: Who's gonna rent them? Apartment vacancy rates have been rising.
"My guess is construction is growing faster than demand in some markets," says Raphael Bostic of the University of Southern California's Lusk Center for Real Estate.
Perhaps most worrisome: The growth in condo investing mythology. Here are three whoppers that need reality checks.
MYTH: Get in early and you'll be guaranteed a profit.
But getting in early doesn't guarantee riches anymore. That's because developers have caught on to the demand and are now selling preconstruction properties at market prices, says Kimberly Kirschner, a Miami agent who specializes in new condos.
Also, developers are requiring buyers to reserve their units earlier -- as much as three years in advance. That's an awfully long time to assume a hot condo market will continue to boil.
So when it comes to preconstruction, skip that line. Instead, buy an existing unit. While preconstruction purchasers can wait up to three years with very little to show for it at the end, you can collect 36 months of rent to put toward paying off your mortgage and building equity. If prices continue to appreciate, great. But that's a cherry, not the whole sundae.
MYTH: Creative mortgages lower your payments and guarantee positive cash flow.
New twists on adjustable-rate mortgages and interest-only loans can make condo investing seem like a lark. But some of these things could slaughter you if prices fall when you have to sell.
The riskiest is called an option ARM, which features several payment choices each month, including a standard interest-and-principal payment, an interest-only payment and an interest-only minimum payment that's so low it doesn't cover the month's interest charge. The unpaid interest is rolled into the principal, meaning that -- yes -- you're charged interest on your unpaid interest.
Fort Lauderdale resident Bruce Palmer, 50, recently signed up for an option ARM that cuts his monthly payment on a $417,000 investment condo by $500. As a result, his two-bedroom in Fort Lauderdale should generate a profit of $350 a month.
Palmer, a commercial pilot, says he sees the risk. Paying the interest-only bare minimum means his mortgage is growing, not shrinking. If local prices were to drop, his loan balance could exceed the condo's value.
But Palmer is confident, building a war chest to snap up properties. "If I could leverage more," he says wistfully, "I would."
Author Gary Eldred worries about such sunny thinking. Most condo investors should avoid option ARMs, he says, and either put down more money to lower the monthly payment or consider buying -- gasp -- a less expensive unit.
Whatever your choice, Eldred says your expected rent should cover at least 70 percent of your total monthly costs. Tax write-offs on condo losses can help close some of that gap, he notes. (Up to $25,000 in losses, excluding mortgage-principal payments, can be charged against total income of less than $150,000.)
And he argues that rising rents should, over time, cover the rest. (With condo prices soaring, Eldred predicts that condo rents will follow as would-be buyers get priced out and rent.) More cautious investors would want their rent to cover 100 percent of carrying costs or more.
MYTH: You should buy in your backyard, where you know the landscape.
Too few condo investors recognize one of the best reasons to buy: It can help diversify your real estate holdings so that your portfolio doesn't rise and fall solely on hometown economics and events. (Even if property is a relative bargain in your area, buying wisely elsewhere can make more sense than buying too much property locally.)
New York City attorney Richard Savitt, 40, never thought about all this 18 months ago, when he abandoned hopes of investing in Big Apple condos and bought in Philadelphia instead.
"We just thought New York prices were crazy," he explains.
But it sure looks wise now. Savitt and four partners bought four one-bedroom condos, each around $300,000. Similar units now list for as much as $450,000.
To help you determine where to invest, take the average price at which units are selling in a city and divide it by the annual rent the average apartment there generates. That will produce a price-to-rent ratio. The lower the better. Houston, Atlanta and Philadelphia, for instance, still look relatively good, while New York City and San Francisco do not.
In Minneapolis, Cowen and four other investors who've become pals gather at a bar for their fortnightly meeting. Jahn Dyvik, a 42-year-old engineer who sold his Porsche Boxster to help fund more condo buys, says lower prices in neighboring St. Paul make that city the better bet.
The rest of the group is sticking with Minneapolis, where they think prices will rise faster. Two others have also sold their cars. All have home-equity loans.
Where are prices headed? Cowen's not sure. The long-term case for condos looks good, but all the building out there makes him nervous. "People have unrealistic profit expectations."
Not him, of course. "No one has a crystal ball. But the condos I've bought are going to go up."
Monday, August 15, 2005
Myrtle Beach Condo Experts Announce New National Preconstruction Directory
New website allows Condo Investors to compare areas and markets, and view the top resorts in each state to decide where they would like to buy pre-construction condo projects
Myrtle Beach, SC (PRWEB) August 15, 2005 -- The Myrtle Beach Condo Store in Myrtle Beach is the number one source in the Grand Strand area for condos and investment real estate. Headed up by David O'Connell, the company, like its predecessor New Resorts, has always had a policy of being available to would-be investors for answering questions and helping new investors to understand the preconstruction process.
"Our employees have joined real estate forums, and investment sites that provide a good resource for buyers and speculators. Several of these informative websites allow investors, developers, sellers, and buyers to come together and help each other.", says O'Connell. "We have created groups and blogs to provide a format for announcing new investment real estate opportunities, and feel an obligation to provide answers to anyone who would like to find out more about this kind of an investment. Actually, we enjoy talking about it because we love what we do."
Because so many people are not sure of where to buy resort property, and today's "buzz-word" is "bubble", O’Connell’s team has created a Preconstruction Condo Directory called Preconstruction Condos.com and hope to attract the top real estate agents in major cities that can showcase the new construction projects for their area.
"We are only looking for the agents at the top of their game in the preconstruction or new construction investment properties to participate in this project. .Anyone who comes aboard now will have a free page for at least a year, in which they can post photos, contact information and direct links for their own website." O'Connell advises.
As the site progresses and states begin to fill up, agents will be charged a moderate fee, based on the size of the page and, perhaps the popularity of the state. The MB Condo Store team hopes this new website will help to educate the public, and be a great tool for buyers and sellers alike; in contrast to the media hype constantly predicting doom and foreclosures on the horizon.
Currently, Myrtle Beach condo sales are still relatively strong. The next few months will bring some of the best resorts and opportunities for investing that Myrtle Beach has seen so far.
“The prices of Myrtle Beach condos are escalating with every new project that comes along, but they have not even neared the prices in places like Sarasota, Florida or Las Vegas. Whatever “bubbles” that come up are not likely to involve the South Carolina coast any time soon, according to what we are seeing so far.” advises O’Connell.
“Of course we think Myrtle Beach is the best investment area in the nation, and we hope buyers will become familiar with other areas and then agree with us!", he says with a smile.
For a look at the Preconstruction Condos Directory in progress, go to http://www.preconstructioncondos.com/ and check out Las Vegas and Sarasota, Florida.
Agents interested in a free listing can use the contact information on the site to apply.
For more information about investment real estate, contact:
The Myrtle Beach Condo Store
5307A North Kings Hwy
Myrtle Beach, SC 29577
843-839-0005 or 877-839-0005 Toll-free
info@myrtlebeachcondostore.com
Sunday, August 14, 2005
Delmarva Peninsula Is A Beach-House Hot Spot
By Julie Bennett (The Wall Street Journal RealEstateJournal.com)
Ocean City, Md., a five-mile strip of land in the Atlantic Ocean, has only 7,200 permanent residents. But in the summer, that population swells by 350,000 people who travel three or four hours from Philadelphia, Washington and other eastern cities to vacation there.
"People whose kids are out of college and now have disposable income all seem to want a beach home," says Mr. Galloway. "And all properties in Ocean City are within three or four blocks of the Atlantic." Developers are scrambling to meet their demands, and at least 15 condominium projects are in various phases of construction. In early February, the Galloways had 828 condos listed for sale -- 600 of which hadn't been built yet.
"It's outrageous," says Jim Salmon, of Annapolis, Md., who quit his job teaching college to speculate in beachfront realty. Mr. Salmon pays $5,000 for preconstruction reservations for condos in the planning stages, then flips the units once they're finished. He bought one unit for $620,000 recently and sold it a few days later for almost $800,000, he says. He does keep a few top-end condos that will be decorated with upscale furnishings and will be rented for as much as $6,000 a week during the summer...More
Monday, July 25, 2005
Are Real Estate Prices Ready to Fall?
The 13 Riskiest Housing Markets
By Dave Lindorff
If your hometown is on this list, the value of your house may be in jeopardy.
The real estate bug bit Karen Brodie a few years ago. She left her desk job as an accountant with Fidelity Investments in 2001 and teamed up with a cousin to buy a single-family house in the Boston suburb of Dorchester for $98,000. After spending $50,000 to upgrade the house, the pair sold it a year later for $278,000. Now Brodie and her cousin have expanded their operation to include two pricier three-unit buildings in Dorchester and two three-family units in Rhode Island. With the Dorchester properties now up for sale, the pair could turn a profit of between $500,000 and $800,000 in little more than a year.
Across the country, thousands of people like Karen Brodie are chucking their day jobs to become real estate investors. And why not? The nation is experiencing a boom in property values that has seen the median price of an existing home rise 10% in the past year; 37 areas saw prices jump by at least 15%. Thanks to leverage, which lets you buy a property for a fraction of its cost, you can double your money in a flash. More
By Dave Lindorff
If your hometown is on this list, the value of your house may be in jeopardy.
The real estate bug bit Karen Brodie a few years ago. She left her desk job as an accountant with Fidelity Investments in 2001 and teamed up with a cousin to buy a single-family house in the Boston suburb of Dorchester for $98,000. After spending $50,000 to upgrade the house, the pair sold it a year later for $278,000. Now Brodie and her cousin have expanded their operation to include two pricier three-unit buildings in Dorchester and two three-family units in Rhode Island. With the Dorchester properties now up for sale, the pair could turn a profit of between $500,000 and $800,000 in little more than a year.
Across the country, thousands of people like Karen Brodie are chucking their day jobs to become real estate investors. And why not? The nation is experiencing a boom in property values that has seen the median price of an existing home rise 10% in the past year; 37 areas saw prices jump by at least 15%. Thanks to leverage, which lets you buy a property for a fraction of its cost, you can double your money in a flash. More
Monday, July 18, 2005
The Housing Bubble 2: They Are Buying Swampland In Florida Again
The Housing Bubble 2: They Are Buying Swampland In Florida Again
Some Floridians have commented that todays RE fervor exceeds the mania of the 1920's. This story bears that out. "More than 100 people who have sunk tens of thousands of dollars into northern Palm Beach County swampland may never realize their investment because building on the land is nearly impossible, according to a county report."
"In February, Rebecca Gordon of Wellington bought 2-plus acres of northern Palm Beach County swampland for $88,000. But lately, Gordon's had second thoughts: 'Now it's causing me some concern.' Gordon knew the land was under water, but she thought roads would be paved and drainage added. However, there are no plans in place for either, and many doubt there ever will be."
"The Army Corps of Engineers in January responded to a county inquiry about the land purchases, writing that approval of building permits would be 'highly controversial.' Even if permits were issued, the sensitive nature of the land would require buyers to go through wetland mitigation, which means buying another parcel of wetlands in another area for preservation. That could cost a landowner up to $72,000, according to the county."
"Over the past year, more than 120 people have spent tens of thousands of dollars an acre on Palm Beach County's Pal-Mar land. Robert Berman, who has bought and sold Pal-Mar property on behalf of both the coalition and himself, admits he's 'made a killing' by pocketing between $2 million and $3 million selling about 60 parcels over the last year."
"'It was clearly a very selfish motivation,' Berman said. 'I wanted to keep property values up. I was doing it for spite to begin with, but it's turned into an investment.'"
posted by Ben Jones http://www.thehousingbubble2.blogspot.com
Some Floridians have commented that todays RE fervor exceeds the mania of the 1920's. This story bears that out. "More than 100 people who have sunk tens of thousands of dollars into northern Palm Beach County swampland may never realize their investment because building on the land is nearly impossible, according to a county report."
"In February, Rebecca Gordon of Wellington bought 2-plus acres of northern Palm Beach County swampland for $88,000. But lately, Gordon's had second thoughts: 'Now it's causing me some concern.' Gordon knew the land was under water, but she thought roads would be paved and drainage added. However, there are no plans in place for either, and many doubt there ever will be."
"The Army Corps of Engineers in January responded to a county inquiry about the land purchases, writing that approval of building permits would be 'highly controversial.' Even if permits were issued, the sensitive nature of the land would require buyers to go through wetland mitigation, which means buying another parcel of wetlands in another area for preservation. That could cost a landowner up to $72,000, according to the county."
"Over the past year, more than 120 people have spent tens of thousands of dollars an acre on Palm Beach County's Pal-Mar land. Robert Berman, who has bought and sold Pal-Mar property on behalf of both the coalition and himself, admits he's 'made a killing' by pocketing between $2 million and $3 million selling about 60 parcels over the last year."
"'It was clearly a very selfish motivation,' Berman said. 'I wanted to keep property values up. I was doing it for spite to begin with, but it's turned into an investment.'"
posted by Ben Jones http://www.thehousingbubble2.blogspot.com
Saturday, July 9, 2005
Craze for Myrtle Beach Condos Expands to Little River and Intracoastal Waterway
(PRWEB) - Myrtle Beach, SC (PRWEB) July 6, 2005 -- With water-front land for investment condos and real estate in North Myrtle Beach becoming less available, developers are expanding into nearby Little River and its scenic waterway properties to take advantage of the moderate pricing and lower property taxes.
Developers have announced a new luxury condo project at the Coquina Harbour Marina. The 113 slip marina is bordered by the popular Lightkeeper"s Village on the southern side, and Harbourview Resort on the north. The newest Coquina Harbour Resort will be located in a once in a lifetime position to not only see the marina , harbor and yacht basin -- but this will be one of the only resorts on the Grand Strand to also view the Intracoastal Waterway, as well as the ocean, from the higher floors.
There will be one to four bedroom units available starting in the $200K range, and they will boast all the luxury amenities, including granite countertops, tiled floors, stainless kitchen packages, jacuzzi tubs, and high speed internet access. Boat slips are available through the marina for those interested.
This popular marina is the nicest landing in Little River, with easy ocean access and beautiful landscaping, from the harbor to the marshland as it continues out towards the ocean. Preconstruction purchases are now available, and will sell out very quickly.
Those interested in these fantastic Myrtle Beach condos for sale, and other preconstruction real estate investment properties can contact the MB Condo Store from the website, or call any of the numbers below for more information.
The Myrtle Beach Condo Store is the Number One source for the condos in the Carolinas, and can also advise and help with 1031 tax exchange properties.
Contact:
The Myrtle Beach Condo Store
5307 North Kings Hwy
Myrtle Beach, SC 29577
843-839-0005 or 877-839-0005 Tollfree
www.myrtlebeachcondostore.com
See other press releases at
Myrtle Beach Condos
Myrtle Beach Preconstruction
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